Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?
A) Direct labor
B) Salary of a factory supervisor
C) Units of production depreciation on factory equipment
D) Direct materials

Question

Quizplus · Accepted Answer

The salary of a factory supervisor is a fixed cost that remains the same regardless of the number of units produced. Direct labor, direct materials, and units of production depreciation on factory equipment are all variable costs that increase with the number of units produced.

Which of the Following Costs Is an Example of a Cost