Which of the following is a fixed cost?
A)Direct materials cost
B)Direct labor cost
C)Sales commissions expense
D)Straight-line depreciation expense

Question

Quizplus · Accepted Answer

Straight-line depreciation expense is a fixed cost as it remains the same regardless of the level of production or sales. Direct materials cost and direct labor cost are variable costs as they change with the level of production or sales. Sales commissions expense is a mixed cost as it has both fixed and variable components depending on the level of sales.

Which of the Following Is a Fixed Cost