Fixed costs include all but
A) a normal rate of return on investment.
B) temporary labor.
C) property tax on the existing buildings.
D) machines that have been producing output.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change regardless of the level of production or sales, such as property taxes on buildings and machines that have already been purchased. However, temporary labor costs are typically considered variable costs because they fluctuate based on the amount of labor needed for a specific production level. A normal rate of return on investment is not a fixed cost, but rather a measure of profitability.

Fixed Costs Include All but