Which of the following is NOT a variable cost of production?
A) the cost of wood used to produce furniture
B) the cost of electricity that powers the lighting and computer systems in an office building
C) the wages paid to nonsalaried employees
D) the property taxes that are paid to the municipal government for the land a plant sits on

Question

Quizplus · Accepted Answer

Property taxes are a fixed cost and do not vary with an increase in production output. The other options are variable costs, meaning they increase or decrease with the level of production.

Which of the Following Is NOT a Variable Cost of Production