Finance Questions? Ask a Financial Expert for Answers ASAP
Hello and welcome to Just Answer
No. Insurance Premiums are Fixed Costs. The definition of a variable cost is: A cost that is fixed on a per unit basis, but varies in total with the change in the level of activity. Definition of a Fixed Cost is: A cost that is Fixed in total, but varies on a per unit basis with changes in the level of activity. Now since insurance premiums are fixed no matter how much the factory produces, they are considered fixed costs.
Please leave feedback