Question

Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of which costs?

Answer 1

Answer/

Explanation:

Rental expenses are classified as fixed expenses, these expenses as companies are sure that their cost is not planned, and there will be no change from month to month. Even though operating costs are high for the public company, financial planning is the tool Good Earth could have used to not close down.