Which two terms below describe the wages paid to security guards that monitor a factory 24 hours a day?
A) variable cost and direct cost
B) fixed cost and direct cost
C) variable cost and indirect cost
D) fixed cost and indirect cost

Question

Quizplus · Accepted Answer

The wages paid to security guards are considered a fixed cost because they do not vary with the level of production. They are also considered an indirect cost because they are not directly tied to the production of a specific product.

Which Two Terms Below Describe the Wages Paid to Security