Mike Wants to Set Up a Factory to Manufacture Roller

Multiple Choice

Mike wants to set up a factory to manufacture roller skates.He plans to employ a hundred people in his factory.Mike's primary expenses include rent, utilities, insurance, administrative salaries (for executives and higher-level managers) , and depreciation of the physical plant and equipment.The expenses for raw material and labour to make the skates constitute the:

A) standard costs.
B) variable costs.
C) rebate.
D) improvement value.
E) fixed costs.