Which of the following is likely a fixed cost in a fast-food restaurant?
A)cost of flour for pizza crust
B)cost of pepperoni for pizza topping
C)shift manager's salary
D)monthly electric bill

Question

Quizplus · Accepted Answer

The shift manager's salary is likely a fixed cost as it is a consistent expense that does not vary with the level of business activity. The cost of flour and pepperoni may be variable costs that depend on the amount of pizza sold, and the monthly electric bill may be a semi-variable cost that includes both fixed and variable components.

Which of the Following Is Likely a Fixed Cost in a Fast-Food