Which of the following is an example of a cost that does NOT change in total over wide ranges of volume or activity?
A) the company president's salary
B) cloth used to make shirts
C) bottles used in a beverage company
D) hourly wages for production line workers

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. The company president's salary is a fixed cost as it does not change with the level of production or sales.

Which of the Following Is an Example of a Cost