Which of these is not a fixed cost?
A) Depreciation on motor vehicles.
B) Direct labour.
C) Management salaries.
D) Lease payments.

Question

Quizplus · Accepted Answer

Direct labour is a variable cost as it varies with the amount of production. A fixed cost is one that remains constant regardless of the level of production. The other options (Depreciation on motor vehicles, Management salaries, Lease payments) are all examples of fixed costs.

Which of These Is Not a Fixed Cost