A. average fixed costs
B. average variable costs
C. fixed costs
D. variable costs
Correct Answer:
Option C – fixed costs
Explanation
Examples of general and administrative expenses are:
- Accounting staff wages and benefits.
- Building rent.
- Consulting expenses.
- Corporate management wages and benefits (such as for the chief executive officer and support staff)
- Depreciation on office equipment.
- Insurance.
- Legal staff wages and benefits.
- Office supplies.
Fixed costs are those costs that must be incurred in fixed quantity regardless of the level of output produced.
