Exhibit 7-6

-In Exhibit 7-6, which costs are fixed costs?
A) rent, labor costs, and material costs
B) rent and labor costs
C) rent and material costs
D) labor and material costs
E) rent only

Question

Exhibit 7-6
 
-In Exhibit 7-6, which costs are fixed costs?
A) rent, labor costs, and material costs 
B) rent and labor costs 
C) rent and material costs 
D) labor and material costs 
E) rent only

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of production or sales, such as rent. Labor and material costs typically vary with production levels.

Exhibit 7-6 -In Exhibit 7-6, Which Costs Are Fixed Costs