A highly successful bakery specializes in making cherry tarts.The bakery workers are paid by the number of tarts they make and that are sold.Which of the following costs at the bakery is NOT variable?
A) cherries
B) rental fee on bakery's building
C) flour for tarts
D) all of these

Question

Quizplus · Accepted Answer

The rental fee on the bakery's building is a fixed cost, which means it does not change with the level of production. The cost of cherries and flour are directly related to the number of tarts made and sold, so they are variable costs.

A Highly Successful Bakery Specializes in Making Cherry Tarts