For a football club, the bulk of a professional footballer's wages is not linked directly to the creation of output, namely, football games. Even if revenues drop, clubs still have to honour their contractual obligations with their players. This means that, for the club, the footballers' salary is a(n) _____ cost.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change in relation to the level of output or activity. In this case, footballers' salaries remain constant regardless of the number of football games played or the revenue generated, making them a fixed cost for the club.

For a Football Club, the Bulk of a Professional Footballer's