An example of a fixed cost for a manufacturer would be which of the following?
A)Sales commissions
B)Salary of plant manager
C)Direct materials
D)Delivery costs

Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant regardless of production levels, and the salary of a plant manager is an example of a fixed cost. Sales commissions, direct materials, and delivery costs are typically variable costs that change with production levels.

An Example of a Fixed Cost for a Manufacturer Would