ABC Cupcakes is a small bakery specializing in gourmet cupcakes. Which of the following would be categorized as one of its fixed costs?

Name: ABC Cupcakes is a small bakery specializing in gourmet cupcakes. Which of the following would be categorized as one of its fixed costs?
Brand: Quizplus
Rating: 5.0 (42 reviews)

Question

Quizplus · Accepted Answer

Rent is a fixed cost as it remains constant regardless of how many cupcakes are produced. Flour, eggs, and cupcake decorations are variable costs as they vary depending on the amount of cupcakes produced.

ABC Cupcakes Is a Small Bakery Specializing in Gourmet Cupcakes