Which of the following is a fixed cost?
A)payment to hire a security worker to guard the gate to the factory around the clock
B)wages to hire assembly line workers
C)payments to an electric utility
D)costs of raw materials

Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant regardless of the level of production or sales. The payment to hire a security worker to guard the gate to the factory around the clock is a fixed cost as it does not change with the level of production or sales. The wages to hire assembly line workers and costs of raw materials are variable costs that change with the level of production or sales, and payments to an electric utility can be a fixed or variable cost depending on the terms of the contract with the utility company.

Which of the Following Is a Fixed Cost