# Which of the following is most likely a fixed cost? (2023)

## Which of the following is most likely a fixed cost?

Answer: B. Property insurance premiums Explanation: Fixed cost refers to the component of the total cost which does not vary with the production level.

(Video) R067 - 3.1 - Cost of producing the product
(Mr Weir's Computer Science)
Which one of the following is most likely a fixed cost?

Answer and Explanation: The correct answer is option d. property taxes. A fixed cost does not change with the production volume within a relevant range for a given period of time.

(Video) AP Microeconomics Multiple Choice - Part 4
(Tim Stapert)
Which of the following is most likely a fixed cost quizlet?

Which of the following is most likely a fixed cost? The rent for a factory.

(Video) CSCP Exam Practice Question Test 4
(CSCP LEARNING)
Which of the following is fixed cost?

The different examples of fixed costs can be rent, salaries, and property taxes.

(Video) Variable Costs and Fixed Costs (Part 1 of 2)
(The Accounting Tutor)
Which of the following is most likely an example of a fixed cost *?

The answer is A. Rental costs for factory space are a fixed cost because the amount of output does not affect the amount the firm has to pay to rent the factory space.

(Video) Cost Behaviour and Relevant Range
(FTC Global)
Which is a fixed cost quizlet?

A fixed cost is a cost that in total remains constant as volume of activity changes but on a per unit basis varies inversely with changes in volume of activity.

(Video) 75 0.5 Business & Interest Problems Part 1
(Katharine Saunders)
Which is not a fixed cost?

Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.

(Video) FIA MA1 cost classification QUESTIONS PART 1
(Prestige Institute of Accountancy)
What is one example of a fixed cost?

Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

(Video) Acct 305 Chapter 1B Lecture
(John Lord)
How do you find fixed cost?

Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.

(Video) Section C kit Questions Part 3 ACCA F5/PM
(Prestige Accountancy)
What is an example of a total fixed cost?

Total fixed costs are the sum of all consistent, non-variable expenses a company must pay. For example, suppose a company leases office space for \$10,000 per month, rents machinery for \$5,000 per month, and has a \$1,000 monthly utility bill. In this case, the company's total fixed costs would be \$16,000.

(Video) How to Factor Fixed Expenses into Your Budget - mymoneykarma
(mymoneykarma)

## What is one example of a fixed cost and one example of a variable cost?

What Is the Difference Between Fixed Cost and Variable Cost?
Fixed CostsVariable Costs
ExamplesDepreciation, interest paid on capital, rent, salary, property taxes, insurance premium, etc.Commission on sales, credit card fees, wages of part-time staff, etc.
4 more rows
Apr 3, 2023

(Video) Break-Even Analysis
(CFO Perspective)
What is an example of fixed cost and example of variable cost?

Fixed costs are expenses that remain the same regardless of the level of production, while variable costs change based on the production output. Rent, advertising, and administrative costs are examples of fixed costs, while examples of variable costs include raw materials, sales commissions, and packaging. Is an example of a fixed cost is gas?

This is a fixed compensation amount paid to employees, irrespective of their hours worked. Utilities. This is the cost of electricity, gas, phones, and so forth. This cost has a variable element, but is largely fixed.

Is there always a fixed cost?

Fixed costs are in contrast to variable costs, which increase or decrease with the company's level of production or business activity. Together, fixed costs and variable costs comprise the total cost of production. A fixed cost does not necessarily remain perfectly constant. It can vary.

Which statement is true fixed costs?

The correct answer is option B. Fixed costs are constant in total, and variable costs are constant per unit.

What is fixed cost or total fixed cost?

Total fixed cost is the total sum of all fixed costs associated with a business. Fixed costs are not related to production in any way and do not change if production increases or decreases. Examples include rent on a building, utilities, property taxes and other mandatory business expenses.

What are the 6 fixed costs?

Fixed costs include any number of expenses, including rental and lease payments, certain salaries, insurance, property taxes, interest expenses, depreciation, and some utilities.

Is electricity a fixed cost?

Utilities: Expenses like internet, water, electricity, and heating are all fixed costs for accounting purposes. Although these might vary slightly according to use, they're predictable, usually similar expenses from month to month.

Which of these is not a fixed cost to a business?

1. The correct answer is B) direct labor.

Which of the following is most likely a fixed cost chegg?

Answer: B. Property insurance premiums Explanation: Fixed cost refers to the component of the total cost which does not vary with the production level.

## What are examples of fixed costs in healthcare?

Fixed Cost

Fixed costs are ones which do not change and are generally part of long term agreements. For instance, rent and malpractice premiums are common examples of fixed costs in medical practices. Other examples include capital expenditures, building maintenance, and utilities.

What is the best example of a fixed cost?

Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs. Since you have to pay fixed costs regardless of how much you sell, you should be careful about adding fixed costs to your small business.