Suppose the cost formula for monthly depreciation cost in a factory is as follows: Total cost = $20,000
Which type of cost does this formula represent?
A)a variable cost
B)a fixed cost
C)a mixed cost
D)a step cost

Question

Quizplus · Accepted Answer

The cost formula given represents a fixed cost as the total cost remains constant at $20,000 regardless of changes in production levels.

Suppose the Cost Formula for Monthly Depreciation Cost in a Factory