The biggest fixed cost of owning a car is likely to be the ____________.
A)loan payments
B)fuel costs
C)cost of license and renewals
D)maintenance charges

Question

The biggest fixed cost of owning a car is likely to be the ____________. ​
A)loan payments
B)fuel costs
C)cost of license and renewals
D)maintenance charges

Quizplus · Accepted Answer

Loan payments are a fixed cost that must be paid every month regardless of how much the car is driven or how well it is maintained. This cost can be significant, especially if a new car was purchased with a large loan. Fuel costs and maintenance charges are variable costs that are dependent on how often the car is used and how well it is maintained. The cost of license and renewals is a small fixed cost that is normally paid once a year.

The Biggest Fixed Cost of Owning a Car Is Likely