This is Krishna.
I am in ambiguity to conclude the below mentioned point.
Iam working in Restaurant Organization. We have to segargate for Cost Classification for Deefrezer Electricity Expenses. Deepreezer is Essential in Restaurant for freezing the goods in Cool Temparature.
Whether the Defreezer Electricity Charges as Considered as a Fixed Cost or Variable Cost.
Clarification Sought on Classifying Deep Freezer Electricity as Fixed or Variable Cost; Depends on Usage and Agreement Terms. A participant from a restaurant organization sought clarification on whether electricity expenses for a deep freezer should be classified as fixed or variable costs. The response highlighted the need for more information on how the electricity charges are incurred, such as whether they are based on units consumed or fixed monthly charges. Fixed costs remain constant regardless of production levels, while variable costs fluctuate with usage. The classification depends on the nature of the expense agreement, suggesting that the deep freezer electricity charges could be categorized as either fixed or variable based on these factors. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
