Which of the following is most likely a fixed cost?
A) Raw materials costs.
B) Shipping charges.
C) Property insurance premiums.
D) Fuel costs for running the factory.

Question

Quizplus · Accepted Answer

Property insurance premiums are typically a fixed cost, as they are a regular, recurring expense that does not vary based on the level of production or sales. Raw materials costs, shipping charges, and fuel costs are all variable costs, as they will increase with higher levels of production or sales.

Which of the Following Is Most Likely a Fixed Cost