When the golf course is open for business,they have to pay management salaries,insurance,depreciation of building and equipment,and so on,regardless of how many customers they have during the day.These are examples of variable costs.

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These are examples of fixed costs, as they do not vary based on the number of customers the golf course has during the day. Variable costs would include expenses such as electricity, maintenance costs, and labor costs directly related to servicing customers on the golf course.

When the Golf Course Is Open for Business,they Have to Pay