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 based on the production level. Rent on warehouse facility, depreciation on manufacturing equipment, and property taxes on factory building would all be considered fixed costs as they do not change with varying production levels.

All of the Following Would Be Considered a Fixed Cost