Which of the following is a fixed cost with respect to units produced in a factory?
A) monthly rent payment for the building
B) electricity expenses
C) utilities cost of the building
D) direct material costs

Question

Quizplus · Accepted Answer

Monthly rent payment for the building is a fixed cost because it remains constant regardless of the level of production in the factory. The other options listed are either variable costs that change with the level of production (electricity and utilities) or direct costs specific to the production process (direct material costs).

Which of the Following Is a Fixed Cost with Respect