Fixed Operating Costs ________.
A) Are not included in COGS
B) Include expenses like the DSL bill and rent
C) Are not direct costs of creating each product
D) All of the above.

Question

Quizplus · Accepted Answer

Fixed operating costs refer to expenses that remain constant irrespective of the production or sales volume. These costs are not included in COGS, as they are not directly related to the production process. Examples of fixed operating costs include rent, utilities, insurance, and salaries of administrative staff. Therefore, all of the statements in the given options are correct.