Which of the following is an example of a fixed cost for a manufacturer?
A)Salary of plant manager
B)Sales commissions
C)Direct materials
D)Delivery costs

Question

Quizplus · Accepted Answer

A fixed cost is a cost that does not change with the level of production. The salary of a plant manager is a fixed cost as it remains the same regardless of how many units are produced. The other options listed are variable costs as they fluctuate with production levels.

Which of the Following Is an Example of a Fixed