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Which of the following is not a fixed cost ?
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- Salaries of administrative staff
- Rent of factory biilding
- Property taxes
- Electricity charges
- Salaries of administrative staff
Correct Option: A
Fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such as salaries or rents being paid per month, and are often referred to as overhead costs. The salaries of administrative staff are variable costs.