The Pizza Depot is an independent retailer of pizzas and deli sandwiches.Which of the following is the BEST example of one of its fixed costs?
A) payment on leased pizza ovens
B) lettuce and tomatoes
C) electric and gas for baking
D) boxes for pizza delivery
E) paper napkins

Question

Quizplus · Accepted Answer

Payment on leased pizza ovens is a fixed cost because it does not vary with the level of output or sales. It is a regular expense that the Pizza Depot incurs regardless of how many pizzas or sandwiches they sell.

The Pizza Depot Is an Independent Retailer of Pizzas and Deli