A $4,000 per month salary paid to a supervisor is an example of a:
A) fixed cost.
B) variable cost.
C) step cost.
D) mixed cost.

Name: A $4,000 per month salary paid to a supervisor is an example of a: A) fixed cost. B) variable cost. C) step cost. D) mixed cost.
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Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant regardless of the level of production or sales. The salary paid to the supervisor is not affected by the amount of output produced or sold, making it a fixed cost.

A $4,000 Per Month Salary Paid to a Supervisor Is