An example of a fixed cost to an electronics retailer is ________.
A) advertising expense
B) personnel bonuses
C) sales commissions
D) electric utility expense

Question

Quizplus · Accepted Answer

Electric utility expense is an example of a fixed cost as it does not vary with the sales or production level of the retailer. The other options listed are variable costs as they are dependent on the level of sales or production, and therefore can change with fluctuations in these factors.

An Example of a Fixed Cost to an Electronics Retailer