Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs.
A) fixed
B) variable
C) break-even
D) target
E) promotional

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with changes in production or sales levels. These costs remain the same regardless of how much a company produces or sells. Examples of fixed costs include rent, salaries of executives, property taxes, and insurance premiums.

Rent, Electricity, and Executive Salaries That Do Not Vary with Production