Which of the following would be classified as a fixed cost for the local supermarket?
A) The rent for the six- year lease for the building the store uses
B) The cost of the boxes of cereal sold in the store
C) The payroll tax the store pays the government on the workers' income
D) The salary and any overtime paid to the store's manager

Question

Quizplus · Accepted Answer

Fixed costs are those that do not change with the level of production or sales. The rent for the building under a six-year lease is a fixed cost because it remains constant regardless of how much the store sells.

Which of the Following Would Be Classified as a Fixed