Rent on an office building would be considered a fixed cost, while sales commissions would be considered a variable cost.

Name: Rent on an office building would be considered a fixed cost, while sales commissions would be considered a variable cost.
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Question

Quizplus · Accepted Answer

Rent on an office building is a fixed cost because it does not change with the level of goods or services produced by the business. Sales commissions, however, are a variable cost because they vary with the amount of product sold.

Rent on an Office Building Would Be Considered a Fixed