Fixed costs typically include items such as:
A) lease payments, administrative staffing, and insurance costs, that remain stable at any production level within a certain range.
B) labor costs that change with the level of production.
C) commission as a percentage of sales paid to sales reps.
D) raw materials.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of production or sales, such as lease payments, administrative staffing, and insurance costs. These costs remain constant regardless of the company's activity level, within a certain range of operation.

Fixed Costs Typically Include Items Such As