Which of these is an example of a fixed cost?

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with the level of production, such as rent or salaries. Factory rental is an example of a fixed cost as it remains constant regardless of the production level. Options B, C, and D are variable costs as they change with the level of production. Factory bonuses are linked to the level of production, packaging costs increase as the volume of products increases, and raw materials are directly tied to the number of items being produced.

Which of These Is an Example of a Fixed Cost