Which of the following is most likely to be a fixed cost?
A)Cost of wheels for a lawn mower manufacturer
B)Rent on a factory building
C)Cost of labor for cashiers at a retail store
D)Supplies used by the housekeeping staff that cleans hotel rooms

Question

Quizplus · Accepted Answer

Rent on a factory building is a fixed cost as it remains the same regardless of the level of production or sales. The cost of wheels, labor, and supplies used by housekeeping staff can vary depending on the level of production or sales, making them more likely to be variable costs.

Which of the Following Is Most Likely to Be a Fixed