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I'm trying to figure out if I have all the major (micro economics)-type costs in existence (whether it be running a business or owning a car)

Fixed costs include: Rent, Insurance, Interest, Advertising, Age depreciation

Variable costs include: Maintenance, Resources (including labor and materials), Use depreciation

Please let me know If I'm missing anything.

2007-03-26 16:39:52 · 3 answers · asked by that_guy 2 in Social Science Economics

3 answers

you forgot inventory (as opposed to simple raw materials)
There are taxes, of course...a big chunk of money
LOL, when it comes to costs, you are always missing something! No free lunch and all, you know

2007-03-26 16:52:44 · answer #1 · answered by greengo 7 · 0 0

It is only my opinion here remember but it seems like advertising should be under variable as it optional while labor and material being your overhead fixed (not optional) age depreciation shouldn't be on the chart (repair & replacement maybe) Unless your reading this from a book then therefore you need to get the rest of your answer from the book.

2007-03-26 23:58:40 · answer #2 · answered by Anonymous · 0 0

Not sure advertising applies to owning a car for fixed costs.
Also as a business owner, my advertising is partly fixed and can be variable for special opportunities. It can vary year to year.

2007-03-27 00:00:13 · answer #3 · answered by 10 Point Shoe-In 3 · 0 0

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