Which of the following is an example of a fixed cost for a manufacturer?
A) Salary of plant manager
B) Sales commissions
C) Direct materials
D) Delivery costs

Question

Quizplus · Accepted Answer

A fixed cost is a cost that does not change with the level of production or sales. The salary of a plant manager is a fixed cost as it does not vary with the amount of goods produced or sold. Sales commissions, direct materials, and delivery costs are variable costs as they increase or decrease with changes in production or sales levels.

Which of the Following Is an Example of a Fixed