Which of the following is an example of a fixed cost?
A)power cost in the machining department
B)wood in the manufacture of furniture
C)labour cost paid on a piece basis
D)lease payments on machinery

Question

Quizplus · Accepted Answer

Lease payments on machinery are a fixed cost as they remain constant regardless of the level of production or sales activity. Power cost in the machining department, wood in the manufacture of furniture, and labor cost paid on a piece basis are variable costs as they vary with the level of production or sales activity.

Which of the Following Is an Example of a Fixed