Krizia is excited about her bakery that she just started. In her bakery, rent, utilities, and salaries of non-production staff will all be elements of:
A) fixed costs.
B) variable costs.
C) profit margin.
D) sales price.

Question

Quizplus · Accepted Answer

These costs (rent, utilities, and salaries of non-production staff) do not change with the level of production or sales volume, making them fixed costs.

Krizia Is Excited About Her Bakery That She Just Started