Which of the following is probably considered a fixed cost, at least in the short run?
A) The cost of raw materials.
B) The cost of direct labour expenses.
C) The company president's salary.
D) The cost of utilities.
E) The commissions paid to the sales force.

Question

Quizplus · Accepted Answer

The company president's salary is considered a fixed cost because it does not change with the level of production or sales in the short run. Fixed costs are expenses that remain constant regardless of the company's activity level.

Which of the Following Is Probably Considered a Fixed Cost