Which of the following is an example of a fixed cost that is also a sunk cost for a bakery as of January 15?

Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant regardless of a company's production level or sales volume. In this case, the cost of a one-year lease on a building is a fixed cost, as it will remain the same no matter how many baked goods the bakery produces or sells. Additionally, it is a sunk cost because the lease was already signed on January 1, meaning the cost has already been incurred and cannot be recovered. The other options listed are not fixed costs or sunk costs for the bakery as of January 15.

Which of the Following Is an Example of a Fixed