Which of the following is a typical example of a fixed cost?
A)raw materials
B)taxes
C)sales commissions
D)building rental expenses

Question

Quizplus · Accepted Answer

Fixed costs are expenses that remain the same regardless of the level of production or sales. Building rental expenses are a typical example of a fixed cost as the rental fee remains the same whether the company produces or sells more or less. Raw materials, taxes, and sales commissions are examples of variable costs as they increase or decrease depending on production or sales levels.

Which of the Following Is a Typical Example of a Fixed