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) Cost of adhesive for benchtops
D) Rent of factory premises

Question

Quizplus · Accepted Answer

Rent of factory premises is a fixed cost as it remains constant irrespective of the number of kitchens produced or the labor cost involved. The hourly labor cost (A) is a variable cost as it changes with the number of hours worked. Material cost (B) and adhesive cost (C) are also variable costs as they change with the number of kitchens produced.

For a Manufacturer of Kitchens,which of the Following Would You