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 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

Rent for the company's offices is a fixed cost because it remains the same regardless of how many monitors are produced. The other choices are either variable costs (A, E) or not directly related to the production of the monitors (B, D).

Which of the Following Would Be an Example of a Fixed