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

Question

Quizplus · Accepted Answer

The rent for the company's offices would be a fixed cost because it does not vary based on the number of carbon monoxide monitoring systems produced or sold. The other options listed could potentially vary based on production or sales, making them variable costs.

Which of the Following Would Be an Example of a Fixed