Answer
B. building rental costs
Explanation:
In the context of business operations, it is important to distinguish between different types of costs that a business may incur. One way of categorizing these costs is by separating them into variable and fixed costs. Variable costs are expenses that change with the level of production, such as the cost of raw materials, utilities, or labor. These costs will vary depending on how many units of a product or service a business produces.
In contrast, fixed costs are expenses that remain constant regardless of the level of production. Building rental costs are a classic example of a fixed cost. Regardless of how many units a business produces, it will need to pay the same amount of rent each month or year. This cost will remain constant over the specified period of the lease, whether or not the business is actively producing anything.
Fixed costs like building rental costs can be significant for businesses, particularly those that require physical space to operate, such as retail stores or manufacturing facilities. These costs need to be factored into a business's financial planning and budgeting, as they represent a necessary expenditure that cannot be avoided. However, it is worth noting that fixed costs can also provide some stability to a business, as they are predictable and can be planned for in advance.
