ITC Hotels Interview Questions and Answers

Fixed cost is a cost that remains constant regardless of the level of production, while variable cost changes with the level of production.

• Fixed cost does not vary with the level of production or sales.

• Variable cost changes in direct proportion to the level of production or sales.

• Fixed costs include expenses like rent, salaries, and insurance.

• Variable costs include expenses like raw materials, direct labor, and sales commissions.

• Fixed costs are incurred even if there is no pr...read more

Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods.

• Compound interest is calculated based on the initial principal amount and the interest earned from previous periods.

• It is different from simple interest, which is calculated only on the principal amount.

• Compound interest can be calculated using the formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest r...read more