Which of the following is an example of a fixed cost for a manufacturer?
A)Income Taxes
B)Machine Repair Expense
C)Fire Insurance on buildings
D)Delivery Fuel Expense

Question

Quizplus · Accepted Answer

Fire insurance on buildings is a fixed cost because it remains constant regardless of the level of production or sales. The other options (income taxes, machine repair expense, and delivery fuel expense) are variable costs which increase or decrease with changes in production or sales levels.

Which of the Following Is an Example of a Fixed