Which of the following costs would be incurred even if no units were produced?
A) raw material costs
B) direct labour costs
C) transportation costs
D) building rental costs
E) purchasing costs

Question

Quizplus · Accepted Answer

Building rental costs would be incurred regardless of whether any units are produced as the company will still need to pay rent for the space in which it operates. However, raw material costs, direct labour costs, transportation costs, and purchasing costs would only be incurred if there are units produced.

Which of the Following Costs Would Be Incurred Even If