A manager at an airline must purchase individual annual licenses and pay registration costs for each airplane in the fleet of airplanes they operate at the airport.What type of cost is/are the registration and license costs for the miles flown each year for each individual airplane?
A)Fixed and variable cost for the miles flown by each individual plane.
B)Mixed cost for the miles flown by all planes each year.
C)Fixed cost for the miles flown by each individual plane.
D)Variable cost for the miles flown by each individual plane.
E)Licenses and registrations are not considered costs to the airline.

Question

Quizplus · Accepted Answer

The registration and license costs for each airplane are fixed costs because they do not change with the number of miles flown by each individual plane. These costs are incurred regardless of how much each plane is flown.

A Manager at an Airline Must Purchase Individual Annual Licenses