Which of the following would probably be a fixed cost in a fast-food restaurant?
A) cost of hamburger
B) cost of french fries
C) shift manager's salary
D) utility cost

Question

Quizplus · Accepted Answer

A fixed cost is one that does not change with the level of production or sales. The shift manager's salary is a fixed cost as it is a recurring expense that remains the same regardless of the number of hamburgers or fries sold. The cost of hamburger and french fries are variable costs as they fluctuate with the level of production. Utility costs may be fixed or variable depending on the billing structure, but they are more likely to be variable as they may change with the amount of energy used.

Which of the Following Would Probably Be a Fixed Cost