Which of the following is not a variable cost of producing sweatshirts?
A) Electricity cost of $0.25 per kilowatt/hour to run sewing machines in factory.
B) Janitorial cost of $2,000 per month.
C) Cost of thread.
D) Wages of production workers.

Question

Quizplus · Accepted Answer

Janitorial costs are fixed costs as they do not change with the quantity of sweatshirts produced. Variable costs are those costs that increase or decrease with the level of production, such as electricity, cost of thread, and wages of production workers.

Which of the Following Is Not a Variable Cost of Producing