Fixed costs normally will not include
A) property taxes.
B) direct labor.
C) supervisory salaries.
D) depreciation on buildings and equipment.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of production or sales. Direct labor, on the other hand, is a variable cost that changes with the level of production. Therefore, direct labor is not considered a fixed cost. The other options, including property taxes, supervisory salaries, and depreciation on buildings and equipment, are all considered fixed costs as they do not vary with production levels.

Fixed Costs Normally Will Not Include