Business Finance and Arithmetic — Entrepreneurship STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipBusiness Finance and Arithmetic1 Mark
Question
What is operational cost? Give its classification.
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Answer
Operational costs are incurred for carrying out the day-to-day operations of the business.They are further classified as:
Fixed costs: These costs are not dependent upon the level of output. These costs an entrepreneur has to incur for starting a business and also as various administrative expenses.
Variable costs: These costs are those which vary with the total cost of the organisation when output varies. These are related with the production of the product.
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