Which of the following is a fixed cost?
A) Direct materials
B) Personnel manager's salary
C) Operating supplies
D) Direct labor

Question

Quizplus · Accepted Answer

Fixed costs are those that do not vary with changes in production or sales, such as salaries and rent. The personnel manager's salary is an example of a fixed cost, as it is a consistent expense regardless of how much product is being produced. Direct materials, operating supplies, and direct labor are variable costs, as they will increase or decrease depending on the level of production.

Which of the Following Is a Fixed Cost