Which of the following is not an example of a fixed cost for manufacturer of bicycles?
A)Rent on factory warehouse
B)Insurance on factory equipment
C)Number of tires
D)Advertising costs

Question

Quizplus · Accepted Answer

The number of tires is not a fixed cost, as it is directly related to the number of bicycles produced. The other choices, such as rent on factory warehouse, insurance on factory equipment, and advertising costs, are fixed costs that are incurred regardless of the number of bicycles produced.

Which of the Following Is Not an Example of a Fixed