Which of the following is a fixed cost of producing sweatshirts?
A) Wages of production workers.
B) Salary of the factory supervisor.
C) Cost of cotton and polyester cloth used in shirts.
D) Lubricants cost for sewing machines.

Question

Quizplus · Accepted Answer

A fixed cost is a cost that stays the same regardless of how many products are produced. The salary of the factory supervisor is a fixed cost because it does not change with the level of production. The wages of production workers, cost of cotton and polyester cloth used in shirts, and lubricants cost for sewing machines are variable costs because they change with the level of production.

Which of the Following Is a Fixed Cost of Producing