For a manufacturer of kitchens, which of the following would you expect to be a fixed cost?
A) Hourly labour cost of employee installing kitchens
B) Material for kitchen benchtops
C) Adhesive for benchtops
D) Rent of factory premises

Question

Quizplus · Accepted Answer

The rent of factory premises is a fixed cost as it remains the same regardless of the level of production. The hourly labour cost of employees installing kitchens and the cost of materials and adhesives are all variable costs as they increase or decrease based on the level of production.

For a Manufacturer of Kitchens, Which of the Following Would