Which of the following costs is an example of a fixed cost?
A) Salary of plant manager
B) Sales commissions
C) Direct materials
D) Delivery costs

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with changes in output or sales, meaning they remain the same regardless of how much product is produced or sold. The salary of a plant manager is a fixed cost as it is a set amount that remains constant, regardless of changes in production or sales levels. Sales commissions, direct materials, and delivery costs are variable costs, as they increase or decrease with changes in output or sales.

Which of the Following Costs Is an Example of a Fixed