Which of the following is most likely a fixed cost?
A) sales representative commissions
B) product distribution costs
C) manufacturing input costs
D) temporary worker salaries
E) facility rental payments

Question

Quizplus · Accepted Answer

Facility rental payments are a fixed cost because they are a regular expense that does not vary with changes in production or sales volume. The other options listed are more likely to be variable costs because they are influenced by changes in activity levels.

Which of the Following Is Most Likely a Fixed Cost