Examples of fixed costs include all but one of the following A)Cost of factory rent for the 12 month contract term B)Cost of Janet's apartment rent during her 3^rd year of university C)Cost of a car rental which includes a fee per km driven D)A one-week rental of a carpet cleaning machine

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with changes in the volume of goods or services produced, such as rent or salaries. Choice C includes a fee per km driven, which means the cost will vary based on the volume of usage, making it a variable cost instead of a fixed cost. Choices A and B are examples of fixed costs as they are predetermined expenses that do not vary with usage. Choice D is a one-time rental and therefore not a fixed cost.

Examples of Fixed Costs Include All but One of the Following