A highly successful bakery specializes in making cherry pie.Which of the following costs at the bakery is not variable?
A)Cost of cherries
B)Cost of flour
C)Cost of wax paper liners
D)Cost of the oven
E)Cost of heating the oven

Question

Quizplus · Accepted Answer

The cost of the oven is a fixed cost because it does not change with the level of production. It is a one-time purchase or a long-term investment, unlike variable costs which fluctuate with production levels.

A Highly Successful Bakery Specializes in Making Cherry Pie