Which of the following is the best example of a fixed cost for a business?
A) the insurance payment for the protection of a building owned by the firm
B) shipping charges for the delivery of products
C) managerial salaries paid
D) the total of medical insurance premiums on the firm's employees

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of goods or services produced by the business. The insurance payment for the protection of a building is a fixed cost because it remains constant regardless of the business's level of production or sales.

Which of the Following Is the Best Example of a Fixed