Ted is analyzing a project using simulation.His focus is limited to the short-term.To ease the simulation process,he is combining expenses into various categories.Which one of the following should he include in the fixed cost category?
A)production department payroll taxes
B)equipment insurance
C)sales tax
D)raw materials
E)product shipping costs

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with the level of production or sales. Equipment insurance is a fixed cost as it remains constant and does not change regardless of the level of production or sales. The other options listed are variable costs as they change based on the level of production or sales.

Ted Is Analyzing a Project Using Simulation