A small business is engaged with a cloud provider to migrate from on-premises CRM software. The contract includes fixed costs associated with the product. Which of the following variable costs must be considered?
B, Operating expenditure fees; as they are considered variable costs as they can change based on the amount of resources or services used.
Human capital is generally considered a fixed cost, as it refers to the employees and their skills and knowledge that a company invests in over the long term. However, I agree that if a company hires contractors or temporary employees to complete a specific project related to the cloud migration, those costs could be considered variable, but in generally terms, it's fixed.
D should be correct
Variable costs will include the cost of raw materials, employee salaries (if the employees are paid by the hour or per widget), and utilities, most likely.
how is licensing a variable cost?
Licensing is fixed and payed by the period of time
upvoted 2 times
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