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  • ICAR and TNAU E-Course Summarized

    Summarized Notes
  • Which of the following is a fixed cost?

    Question: Which of the following is a fixed cost?

    Options:

    Cost of seed
    Cost of fertilizer
    Wages of permanent labor
    Cost of manure

    ✅Explanation:
    Fixed costs are expenses that remain constant regardless of the level of production output.
    -Wages of permanent labor:Permanent employees receive a regular salary, which does not fluctuate with changes in production levels. Therefore, it is considered a fixed cost.

    📌Other Options:
    -Cost of seed:This is a variable cost, as the amount of seed required will change depending on the quantity of crops being planted.
    -Cost of fertilizer:This is also a variable cost, as the amount of fertilizer needed will vary based on the size of the area being cultivated and the specific crop requirements.
    -Cost of manure:Similar to fertilizer, this is a variable cost as the amount needed will depend on the size of the land and the specific crop requirements.

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