Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?
A) Property taxes on a headquarters building.
B) Legal department salaries.
C) Cost of leasing the company's mainframe computer.
D) Production supplies.

Question

Quizplus · Accepted Answer

Production supplies are typically classified as a variable cost, as the total cost will increase or decrease in proportion to the number of units produced and sold. The other options are more likely to be classified as fixed costs.

Which of the Following Is Unlikely to Be Classified as a Fixed