Which of the following is a typical example of a fixed cost of production in a manufacturing firm?
A)depreciation of capital
B)wages paid to hourly workers
C)electricity charges
D)sales taxes due

Question

Quizplus · Accepted Answer

Depreciation of capital is a fixed cost because it does not change with the level of production or sales. It is a cost that the company incurs over time for the use of its fixed assets, such as machinery and equipment, regardless of how much it produces.

Which of the Following Is a Typical Example of a Fixed