Fixed overhead costs include ________.
A) the cost of sales commissions
B) property taxes paid on plant facilities
C) energy costs
D) indirect materials

Question

Quizplus · Accepted Answer

Fixed overhead costs are expenses that do not vary with changes in production or sales levels. They typically include rent, property taxes, insurance, and salaries of administrative staff or executives. Out of the options given, property taxes paid on plant facilities is a fixed overhead cost. Sales commissions, energy costs, and indirect materials are not fixed overhead costs, as they vary based on sales or production levels.

Fixed Overhead Costs Include ________