Charlie Vorwek sells flower arrangements made from dried wildflowers she grows in her garden. Which of the following is a fixed cost in this business?
A) decorative ribbon
B) the undecorated wreath forms
C) a rental storage building
D) silica for drying the flowers

Question

Quizplus · Accepted Answer

A rental storage building is a fixed cost because it is an expense that is incurred regardless of how many flower arrangements are made or sold. The other options (decorative ribbon, undecorated wreath forms, and silica for drying the flowers) are variable costs because they depend on the quantity of flower arrangements made and sold.

Charlie Vorwek Sells Flower Arrangements Made from Dried Wildflowers She