Question

Fixed charges for a chemical plant does not include the

• A. Repair and maintenance charges
• B. Interest on borrowed money
• C. Rent of land and buildings
• D. Property tax, insurance and depreciation

Hint:

Repair and maintenance are typically operating costs, not fixed charges.

Answer 1

The Correct Option is A

Fixed charges generally include interest, rent, property tax, insurance, and depreciation, but not repair and maintenance, which is usually considered an operating or variable cost.