A supervisor's salary of £2,000 per month is an example of a
A) fixed cost
B) variable cost
C) mixed cost
D) step cost

Question

Quizplus · Accepted Answer

A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. In this case, the supervisor's salary remains the same irrespective of the level of production or sales, making it an example of a fixed cost.

A Supervisor's Salary of £2,000 Per Month Is an Example