Which of the following is an example of a fixed cost?
A) cost of raw materials
B) cost of supplies
C) shipping costs
D) sales commissions
E) cost of building plants
Answer: E
Explanation: Fixed costs are business costs that remain constant regardless of the number of units produced. Cost incurred in building industrial plants is an example of a fixed cost.
Business
You might also like to view...
The slope of the line labeled "B" in the diagram is:
A) rate of inventory demand. B) production rate. C) shipping rate. D) production rate minus rate of inventory demand.
Business
Which of the following is an example of a functional resource?
A) plant equipment B) corporate reputation C) capital reserves D) skills of a technical expert
Business