Rent,electricity,and executive salaries are examples of ________ costs.
A)fixed
B)variable
C)break-even
D)target
E)marketing

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with changes in production or sales levels, such as rent and executive salaries. Electricity may be considered a mixed cost, as it has a fixed component (e.g. basic service fee) and a variable component (e.g. usage-based charges), but in this context it is likely considered a fixed cost. Break-even costs and target costs are not relevant to this question, and marketing costs are generally considered variable costs.

Rent,electricity,and Executive Salaries Are Examples of ________ Costs