Which of the following is a typical example of a fixed cost?
A)taxes
B)building rental expenses
C)raw materials
D)sales commissions

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with changes in the volume of production or sales. Building rental expenses are a typical example of fixed cost as they remain the same regardless of the level of production or sales. Taxes, raw materials, and sales commissions are not fixed costs as they are likely to vary with changes in production or sales.

Which of the Following Is a Typical Example of a Fixed