Which of the following would be classified as a fixed cost for the proprietor who owns and operates the local Texaco station?
A) the federal excise tax paid on each gallon of Texaco gasoline sold
B) the state income tax on the profit earned
C) the rent paid on the 10 year lease for the property on which the station is located
D) the Social Security tax the owner pays the federal government on the owner's income

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with the level of goods or services produced, such as rent on a long-term lease.

Which of the Following Would Be Classified as a Fixed