JAMB - Economics (2014 - No. 13)

Rent and administrative expenses are examples of
average fixed costs
average variable costs
fixed costs
variable 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.

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