Which of the following is most likely to be a fixed cost for a business?
A) payment for raw materials used in manufacturing goods
B) interest payments on a loan used to finance the construction of a building
C) wages paid to temporary workers
D) shipping charges for the delivery of products

Question

Quizplus · Accepted Answer

Interest payments on a loan used to finance the construction of a building are a fixed cost because they remain constant regardless of the number of units produced or sold. Raw materials, wages for temporary workers, and shipping charges are variable costs that change with production and sales levels.

Which of the Following Is Most Likely to Be a Fixed