Asked by
Michael Fernández
on Oct 12, 2024
Verified
Which of the following is an example of a fixed cost?
A) Rent
B) Insurance premiums
C) Contract salaries
D) Interest payments
E) All of these choices are fixed costs.
Fixed Cost
Costs that do not vary with the level of production or sales, such as rent, salaries, or property taxes.
Insurance Premiums
Payments given to an insurer for the purpose of securing protection against monetary losses from certain risks.
- Gain insight into the critical role and effects of fixed and variable costs in business activities.
Verified Answer
SS
Learning Objectives
- Gain insight into the critical role and effects of fixed and variable costs in business activities.