Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?
A)the lithium batteries that are used in each monitor
B)the chest harness used to wear the monitor
C)the insurance for the company's factory
D)the free training videos that are sent to each new customer
E)the stainless-steel, water-resistant cases in which the monitors are contained

Question

Quizplus · Accepted Answer

Insurance for the company's factory is a fixed cost because the cost remains constant regardless of the number of carbon monoxide monitoring systems produced or sold. The other options are variable costs because they can vary based on the level of production, such as lithium batteries, stainless-steel cases, and chest harnesses. The free training videos may also be a variable cost if their production or distribution is linked to the number of monitors sold.

Which of the Following Would Be an Example of a Fixed