Which of the following would generally be considered a fixed factory overhead cost?
A) no no no
B) yes no yes
C) yes yes no
D) no yes no

Question

Which of the following would generally be considered a fixed factory overhead cost? 
A) no no no 
B) yes no yes 
C) yes yes no 
D) no yes no

Quizplus · Accepted Answer

Fixed factory overhead costs are typically recurring indirect expenses that do not vary with changes in production volume, such as rent, property taxes, and depreciation on equipment. Option C includes two costs (rent and property taxes) that are generally considered fixed factory overhead costs. The other options either do not include any fixed factory overhead costs or include costs that are not typically considered fixed factory overhead costs.

Which of the Following Would Generally Be Considered a Fixed