Which of the following is a fixed cost?
A) labour
B) utilities
C) raw materials supply
D) property insurance

Question

Quizplus · Accepted Answer

Property insurance is a fixed cost because it does not vary with the level of output or production. It is a consistent cost that must be paid regardless of how much or how little the business is producing. Labour, utilities, and raw material supply are variable costs because they are directly tied to the level of production and can vary as production levels change.

Which of the Following Is a Fixed Cost