Which of the following costs is the least likely to be classified as a fixed cost?
A) Factory rent
B) Plant manager salary
C) Direct materials
D) Depreciation on factory building

Question

Quizplus · Accepted Answer

Direct materials are typically classified as a variable cost because the cost varies with the level of production. Fixed costs are expenses that do not vary with changes in production volume, such as factory rent, plant manager salary, and depreciation on factory building.

Which of the Following Costs Is the Least Likely to Be