Fixed overhead cost includes all of the following except:
A)Electricity to heat and light the factory.
B)Depreciation on machinery computed based on the units of production basis.
C)The plant manager's salary.
D)The salary of the security guard at the front door.

Question

Quizplus · Accepted Answer

Depreciation on machinery computed based on the units of production basis is a variable cost, not a fixed overhead cost, because it varies with the level of production.

Fixed Overhead Cost Includes All of the Following Except