Mike Mounts has a membership at the Marigold Men's Fitness Club.The membership costs $30 per month regardless of how many times the facility is used.The membership cost is classified as a:
A)Variable cost.
B)Fixed cost.
C)Step variable cost.
D)Mixed cost.

Question

Quizplus · Accepted Answer

A fixed cost remains constant regardless of the level of activity. In this case, the membership cost is $30 per month, regardless of how many times Mike uses the facility. Therefore, it is a fixed cost.

Mike Mounts Has a Membership at the Marigold Men's Fitness