Which of the following can be considered annual fixed costs for a publishing company?
A) author royalties
B) salaried labor
C) sales commission
D) cost of binding
E) printing costs

Question

Quizplus · Accepted Answer

Salaried labor is a fixed cost because it is a recurring expense that does not vary based on production levels or sales. Author royalties (A) and sales commission (C) are both variable costs because they depend on the amount of sales generated. Cost of binding (D) and printing costs (E) are also variable costs because they are directly related to the number of copies produced.

Which of the Following Can Be Considered Annual Fixed Costs