Which of the following is a fixed cost for a motor car manufacturing plant?
A)Windows for each car produced
B)Administrative salaries
C)Sales commissions
D)Electricity used by assembly-line machines

Question

Quizplus · Accepted Answer

Administrative salaries are a fixed cost as they are salaries paid to the managerial and administrative staff which do not vary with the number of cars produced. Windows for each car produced (A) and Sales commission (C) are variable costs as they vary with the number of cars produced. Electricity used by assembly-line machines (D) is a semi-variable cost as it has both fixed and variable components.

Which of the Following Is a Fixed Cost for a Motor