Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost

Question

Quizplus · Accepted Answer

The cost of certified operators is a fixed cost because it remains constant regardless of the number of customers or the level of activity at the theme park. The cost of hiring and paying the operators is considered a fixed expense because it does not vary with changes in the level of output or sales.

Dizzy Employees a Certified Operator for Each of Its 35