15 Identify two fixed costs that HPT might have. [2]

[BASEL Moderator]

HPT makes frozen food products. The Finance Director wants to improve HPT’s cash flow position. The Table below shows an incomplete cash flow forecast for the next 3 months. The Finance Director thinks HPT should not use expensive packaging. He is also worried that new Government health & safety laws will not benefit the company and will only add to its costs.

15 Identify two fixed costs that HPT might have. [2]

Possible KN Points:
Fixed costs could include: rent, rates, interest payments, electricity, gas, water, salaries.