In the problem above, the cost of hiring the group's own buses is an example of a
A) Variable cost
B) Fixed cost
C) Step cost
D) Mixed cost

Name: In the problem above, the cost of hiring the group's own buses is an example of a A) Variable cost B) Fixed cost C) Step cost D) Mixed cost
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Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant, regardless of changes in activity level. In this case, the cost of hiring the group's own buses would remain the same regardless of how many people participate in the trip.

In the Problem Above, the Cost of Hiring the Group's