Which of the following quotes best illustrates the idea of fixed cost?
A)"As we increase output,per-unit costs rise."
B)"My primary source of overhead cost is the cost of running the head office."
C)"If I need to,I can negotiate more overtime with my work force to meet unexpected orders."
D)"If I double the number of workers and trucks,I get only 80 percent more packages delivered."
E)"Labour costs are always rising."

Question

Quizplus · Accepted Answer

The quote "My primary source of overhead cost is the cost of running the head office" best illustrates fixed cost because overhead costs are typically fixed and do not vary based on the level of output or production.

Which of the Following Quotes Best Illustrates the Idea of Fixed