Classify each cost shown below according to the type of fixed cost that it reflects
-Property taxes on the factory.
A) Direct Fixed Cost
B) Common Fixed Cost
C) Allocated Fixed Cost

Question

Quizplus · Accepted Answer

Property taxes on the factory are considered a common fixed cost because they are not directly tied to a specific product or department but are necessary for the overall operation of the factory.

Classify Each Cost Shown Below According to the Type of Fixed