Expenses are classified according to which two broad categories?
A)Stable and fluctuating
B)Fixed and stable
C)Fixed and variable
D)Fluctuating and variable

Question

Quizplus · Accepted Answer

Expenses are classified into two broad categories - fixed and variable. Fixed expenses remain constant irrespective of the changes in production or sales volume (e.g. rent, salaries, insurance), whereas variable expenses depend on production or sales volume (e.g. raw materials, labor, transportation). The other options (A, B, D) do not accurately represent the two categories of expenses.

Expenses Are Classified According to Which Two Broad Categories