Question

In estimating the profitability of a catering business, _______ is most likely to be considered a fixed expense in your overhead costs.
a. rental equipment
b. insurance premiums
c. utilities charges
d. temporary staff wages

Answer 1

insurance premiums.
hope this helps!! (:

Answer 2

Answer:

b. insurance premiums

Explanation:

An insurance premium is the amount of money a business pays for an insurance policy. It is a fixed sum of money, unlike the cost of rental equipment or utilities charges or temporary staff wages that may vary and, for that reason, can hardly be considered to be fixed expenses.