Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for employees to wear that work in hazardous areas?
A)the rent for the company's offices
B)the lithium batteries that are used in each monitor
C)the free training videos that are sent to each new customer
D)the chest harness which the employee must use to wear the monitor

Question

Quizplus · Accepted Answer

Rent for the company's offices is a fixed cost because it remains the same regardless of how many carbon monoxide monitors are produced or sold. The other options are either variable costs (such as the cost of lithium batteries which would increase as more monitors are produced) or promotional costs (such as free training videos that may not be a recurring expense).

Which of the Following Would Be an Example of a Fixed