The pipelines provide their own rights of way,construct the pipelines and pumping stations,pay property taxes,and provide for the preventative maintenance of their transportation networks.This contributes to the high proportion of which of the following in the pipeline's cost structure?
A) variable costs
B) fixed costs
C) variable costs.
D) revenue costs

Question

Quizplus · Accepted Answer

The passage states that the pipelines provide their own rights of way, construct the pipelines and pumping stations, pay property taxes, and provide for preventative maintenance, which indicates that these are fixed costs. Variable costs, on the other hand, would be expenses that vary based on the volume of oil transported or other factors. Revenue costs are not mentioned in the passage.

The Pipelines Provide Their Own Rights of Way,construct the Pipelines