All of the following would be considered a fixed cost for a bottled water company except:
A) Rent on warehouse facility
B) Depreciation on its manufacturing equipment
C) Hourly wages for machine operators
D) Property taxes on its factory building

Question

Quizplus · Accepted Answer

Hourly wages for machine operators would be considered a variable cost, as it varies depending on the amount of production. Rent, depreciation, and property taxes are all fixed costs as they do not vary with production levels.

All of the Following Would Be Considered a Fixed Cost