Which of the following is a fixed cost of producing sweatshirts
A)Salary of the factory supervisor.
B)Cost of cotton and polyester cloth used in shirts.
C)Lubricants cost for sewing machines.
D)Wages of production workers.

Question

Quizplus · Accepted Answer

A fixed cost is a cost that does not change based on the level of production. The salary of the factory supervisor is a fixed cost as it is a recurring expense that needs to be paid regardless of how many sweatshirts are produced. The cost of cotton and polyester cloth (B) is a variable cost as it changes with the level of production. Lubricant cost (C) and wages of production workers (D) can also be considered variable costs as they are directly related to the level of sweatshirt production.

Which of the Following Is a Fixed Cost of Producing