Which of the following would most likely be considered a ﬁxed cost for a given time period?
A) Sales commissions.
B) Salary of the Chief Financial Oﬃcer.
C) Advertising expenditures.
D) Shipping expenses.
E) Cost of goods sold.

Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant, regardless of the level of production or sales. The salary of the Chief Financial Officer is a fixed cost as it remains the same irrespective of the amount of sales or production.

Which of the Following Would Most Likely Be Considered a ﬁXed