Which of the following is most likely to be a fixed cost for a business?
A) expenditures on low-skill labor.
B) shipping charges for the delivery of products.
C) materials costs.
D) property taxes on the firm's buildings.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with changes in the level of activity or production, and property taxes on the firm's buildings are an example of a fixed cost. Expenditures on low-skill labor and materials costs are typically variable costs because they increase as production levels increase. Shipping charges may be variable or fixed, depending on the terms of the shipping agreement.

Which of the Following Is Most Likely to Be a Fixed