Which of the following would be classified as a fixed cost for the local supermarket?
A)the rent from the six-year lease on the building where the store is located
B)the cost of the boxes of cereal sold in the supermarket
C)the salary paid to the store's manager
D)the overtime paid to the store's manager
E)the Canada Pension payments that the supermarket makes to the government on the workers' income

Question

Quizplus · Accepted Answer

A fixed cost is a cost that stays constant regardless of how much of a product or service is produced or sold. The rent for the building where the store is located is a fixed cost because it remains constant regardless of how much the supermarket sells.

Which of the Following Would Be Classified as a Fixed