Dan owns a factory that manufactures smartphones.He has many expenses every month to keep his factory running.Which of the following is one of Dan's fixed costs?

Question

Quizplus · Accepted Answer

Fixed costs are expenses that remain constant regardless of the level of production. Dan's mortgage on the factory is a fixed cost because he has to pay it every month regardless of how many smartphones he produces. A, B, and D are examples of variable costs because they typically increase as production increases.

Dan Owns a Factory That Manufactures Smartphones