For a construction company that builds houses, which of the following costs would be a fixed cost?
A)the $50,000 per year salary paid to a construction foreman
B)the $30,000 per year salary paid to the company's bookkeeper
C)the $10,000 per year premium paid to an insurance company
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of output or sales. All the options listed (salaries and insurance premiums) are fixed costs as they remain constant regardless of the number of houses built.

For a Construction Company That Builds Houses, Which of the Following