which expense contributes to a businesss semi - variable cost?\na. payment of insurance premium\nb. purchase…

which expense contributes to a businesss semi - variable cost?\na. payment of insurance premium\nb. purchase of new machinery\nc. payment of office rent\nd. overtime (wages) paid to workers

which expense contributes to a businesss semi - variable cost?\na. payment of insurance premium\nb. purchase of new machinery\nc. payment of office rent\nd. overtime (wages) paid to workers

Answer

Brief Explanations:

Semi - variable costs have both fixed and variable components. Insurance premium and office rent are fixed costs as they are constant regardless of production level. Purchase of new machinery is a capital expenditure. Overtime wages have a fixed - base wage (fixed part) and additional pay based on extra hours worked (variable part), making it a semi - variable cost.

Answer:

D. overtime (wages) paid to workers