Which is not a fixed cost?
A)monthly rent of $1,000 with a 12 month lease
B)an insurance premium of $50 per year,paid last month
C)Tax accountant's salary
D)labor costs paid per hour

Question

Quizplus · Accepted Answer

Labor costs paid per hour are not a fixed cost because they vary depending on how many hours of labor are needed. Fixed costs, on the other hand, remain the same regardless of the level of production or sales. Choices A and B are examples of fixed costs because they have a set amount and time period for payment. Choice C could be a fixed cost if the accountant's salary is a set amount regardless of business activity.

Which Is Not a Fixed Cost