Which of the following is a typical example of a fixed cost?
A)taxes
B)building rental expense
C)raw materials
D)sales commissions
E)hourly wages

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with changes in production or sales levels. Building rental expenses are a typical example of a fixed cost as the rental amount stays the same regardless of how much the business produces or sells. Taxes, raw materials, sales commissions, and hourly wages are examples of variable costs.

Which of the Following Is a Typical Example of a Fixed