Which of the following would be an example of a fixed cost?
A) wages for an assembly line worker
B) electric bill
C) depreciation on equipment
D) materials used

Question

Quizplus · Accepted Answer

Depreciation on equipment is a fixed cost because it is a cost that remains constant regardless of the level of production or sales. Wages for an assembly line worker (A) and materials used (D) are variable costs as they vary based on the level of production or sales. An electric bill (B) could be either a fixed or variable cost depending on the usage and pricing structure.

Which of the Following Would Be an Example of a Fixed