Which of the following would be considered a fixed cost in a manufacturing setting?
A) depreciation
B) direct labor
C) sales commissions
D) direct materials

Question

Quizplus · Accepted Answer

Depreciation is a fixed cost as it represents the cost of the equipment and machinery used in manufacturing, which do not fluctuate with changes in production levels. Direct labor, sales commissions, and direct materials are variable costs as they increase or decrease with changes in production levels.

Which of the Following Would Be Considered a Fixed Cost