Which of the following shows a combination of costs that would normally be fixed and variable costs for a production plant?
A) Costs of building and costs of equipment
B) Land purchase costs and costs of equipment
C) Cost of building and costs of materials
D) Land purchase costs and general manager's salary

Question

Quizplus · Accepted Answer

Cost of building is a fixed cost because it does not change with the level of production, while costs of materials are variable costs because they vary directly with the level of production.

Which of the Following Shows a Combination of Costs That