Which of the following would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?
A)the lithium batteries that are used in each monitor
B)the chest harness used to wear the monitor
C)the insurance for the company's factory
D)the free training videos that are sent to each new customer
E)the stainless-steel,water-resistant cases in which the monitors are stored

Question

Quizplus · Accepted Answer

Fixed cost is the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.Examples of fixed costs are rent on the building,executive salaries,and insurance.Costs for the items listed in the other alternatives are variable costs since they vary with the quantity of the carbon monoxide monitoring systems sold.

Which of the Following Would Be an Example of a Fixed