Which of the following, in a thermal power plant, is not a fixed cost?
Correct answer: A. Fuel cost
- A. Fuel cost
- B. Interest on capital
- C. Depreciation
- D. Insurance charges
Explanation
Fuel expense changes with the amount of energy generated, so it is a running or variable cost. Interest, depreciation, and insurance are generally incurred regardless of short-term output and are fixed costs.
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