Harry's Hotdogs is a small street vendor business owned by Harry Huggins.Harry is trying to get a better understanding of his costs by categorizing them as fixed or variable.Which of the following costs are most likely to be considered fixed costs?

Question

Quizplus · Accepted Answer

Fixed costs are those that do not change regardless of how many hotdogs are sold. The cost of mustard and hotdog buns will vary depending on the volume of hotdogs sold, making them variable costs. Wages paid to workers are also variable costs, as they increase as more hotdogs are sold. However, the cost of bookkeeping services is likely to remain the same regardless of sales volume and is therefore a fixed cost.

Harry's Hotdogs Is a Small Street Vendor Business Owned by Harry