Which of the following is most likely to be a fixed cost?
A) Component parts
B) Raw materials
C) Rent
D) Electricity
E) Transportation

Name: Which of the following is most likely to be a fixed cost? A) Component parts B) Raw materials C) Rent D) Electricity E) Transportation
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

Rent is a fixed cost because it does not vary with production levels or sales. Component parts, raw materials, electricity, and transportation are all variable costs that can increase or decrease with production levels or sales.

Which of the Following Is Most Likely to Be a Fixed