Which of the following would most likely be considered a fixed cost for a given time period?
A) Sales commissions.
B) Salary of the Chief Financial Officer.
C) Advertising expenditures.
D) Shipping expenses.
E) Cost of goods sold.

Question

Quizplus · Accepted Answer

The salary of the Chief Financial Officer (CFO) is considered a fixed cost because it does not change with the level of production or sales within a given time period. Unlike variable costs such as sales commissions, shipping expenses, and cost of goods sold, which fluctuate with business activity, the CFO's salary remains constant regardless of the company's operational volume.

Which of the Following Would Most Likely Be Considered a Fixed