Manufacturing costs such as rent, utilities, interest expense, and some salaries are considered ________ and these costs do not vary with the production or sale of the item.
A) overhead
B) variable
C) division overhead
D) corporate overhead
E) fixed costs

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with the level of production or sales. Examples of fixed costs include rent, utilities, interest expense, and some salaries. These costs are also referred to as overhead costs.

Manufacturing Costs Such as Rent, Utilities, Interest Expense, and Some