Explain Whether Each of the Following Is a Fixed Cost

question 200

Essay

Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlour.
a.The payment he makes to buy tattoo ink.
b.The wages he pays his employees.
c.The $500-per-month payment he makes to advertise his shop on highway billboards.
d.The lease payment he makes to the landlord who owns the building where his shop is located.
e.The payment he makes on his liability insurance policy.
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Definitions:

Associating

The process of connecting thoughts, feelings, or ideas together in the mind or in relationships with others.

Self-Handicapping

A strategy where individuals create obstacles and excuses for themselves so that if they do poorly on a task, they can avoid blaming themselves.

Self-Reference Effect

This refers to the tendency for individuals to better remember information that is personally relevant to them, making it more likely to be recalled than non-self-relevant information.

Self-Esteem

An individual's subjective evaluation of their own worth or value.