F&P Georgia Manufacturing makes automobile suspension assemblies for Honda Motors of America. The subassembly consists of 45 separate components put together with 208 spot welds, many of which are done by robotic welding machines. The lease payment on the robotic welding machines would be an example of a _____ cost.

Question

Quizplus · Accepted Answer

The lease payment on the robotic welding machines is considered a fixed cost because it remains constant regardless of the volume of production.

F&P Georgia Manufacturing Makes Automobile Suspension Assemblies for Honda Motors