Which of the following is a fixed cost?
A)Direct materials cost
B)Direct labor cost
C)Straight-line depreciation expense
D)Sales commissions expense

Question

Quizplus · Accepted Answer

Straight-line depreciation expense is a fixed cost because it remains constant regardless of the level of production or sales. Direct materials cost and direct labor cost are examples of variable costs that increase as production increases. Sales commissions expense is a mixed cost that includes both a fixed component and a variable component, so it can vary depending on the level of sales achieved.

Which of the Following Is a Fixed Cost