Assume you are planning a spring break ski trip to Colorado.You are preparing a budget of your costs.You are staying at a lodge that has a special where the lodge charges you $80 per week for the ski lift regardless of how many times you ride.You believe you will ride the ski lift 40 times during the week.The ski lift charge is an example of a
A)Fixed cost.
B)Variable cost.
C)Mixed cost.
D)Step cost.

Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant despite changes in the level of activity. The ski lift charge of $80 per week is a fixed cost because it remains constant regardless of how many times you ride the ski lift. Therefore, the correct choice is A) Fixed Cost.

Assume You Are Planning a Spring Break Ski Trip to Colorado.You