The fixed costs of General Foods would include all of the following except
A) monthly rent payments on a warehouse
B) pension payments to retired workers
C) interest payments on money borrowed from the bank
D) weekly expenditures for raw materials

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of production or sales, such as rent, pension payments, and interest payments. Weekly expenditures for raw materials vary with production levels, making them variable costs, not fixed costs.

The Fixed Costs of General Foods Would Include All of the Following