Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for employees to wear that work in hazardous areas?
A)the lithium batteries that are used in each monitor
B)the chest harness used to wear the monitor
C)the insurance for the company's factory
D)the free training videos that are sent to each new customer
E)the stainless steel,water-resistant cases in which the monitors are contained

Question

Quizplus · Accepted Answer

Insurance for the company's factory would be a fixed cost because it is a necessary expense that does not vary with the number of units produced or sold. The other options represent variable costs, as they will increase as more units are produced or sold (e.g. more lithium batteries, chest harnesses, training videos, or cases will be needed).

Which of the Following Would Be an Example of a Fixed