Giving examples, what is supplementary cost

Giving examples, what is supplementary cost

Supplementary costs are also called overhead costs or fixed costs. They are costs incurred that do not vary or change with changes in the output level

Examples supplementary costs

  • Rent and lease costs
  • Salaries of permanent managerial or top administration
  • Interests payable on loans
  • Cost of advertisement
  • insurance,
  • loan repayments
  • Property taxes
  • Business licence
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