Asked by
Brianna Yanez
on Nov 25, 2024
Verified
Which of the following is a typical example of a fixed cost of production in a manufacturing firm?
A) depreciation of capital
B) wages paid to hourly workers
C) electricity charges
D) sales taxes due
Fixed Cost
Expenses that do not change with changes in the volume of production, such as rent, salaries, and insurance.
Depreciation of Capital
This refers to the decrease in the value of physical assets over time due to use, wear and tear, or obsolescence.
Wages Paid
The amount of money workers receive from employers in exchange for their labor.
- Contrast variable, fixed, and sunk costs, emphasizing their role in the decision-making process of a business.
Verified Answer
SD
Learning Objectives
- Contrast variable, fixed, and sunk costs, emphasizing their role in the decision-making process of a business.