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QUESTION IMAGE

dave is opening a pizzeria. match the cost to its type hints rent pizza…

Question

dave is opening a pizzeria. match the cost to its type
hints
rent
pizza boxes
employee wages
credit card fees
property tax
insurance
dough
fixed cost
variable cost

Explanation:

Brief Explanations

Fixed costs are expenses that do not change with the level of production or sales. Variable costs change directly with the volume of business activity (e.g., number of pizzas made/sold).

  • Rent, property tax, and insurance are set amounts paid regularly, regardless of pizza sales.
  • Pizza boxes, employee wages (if tied to hours/volume), credit card fees (tied to sales), and dough are dependent on how many pizzas are produced and sold.

Answer:

Fixed cost:

  • Rent
  • Property tax
  • Insurance

Variable cost:

  • Pizza boxes
  • Employee wages
  • Credit card fees
  • Dough