Which of the following would not be an example of a fixed cost?
A) The electricity bill paid for production
B) The rent paid for a warehouse
C) The depreciation on a factory building
D) The property taxes paid on real estate.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of production or sales, such as rent, depreciation, and property taxes. The electricity bill for production, however, can vary depending on the level of production activity, making it a variable cost, not a fixed cost.

Which of the Following Would Not Be an Example of a Fixed