Which of the following is an example of a fixed cost?
Question 1 Report
Which of the following is an example of a fixed cost?
Answer Details
Fixed cost is a type of cost that remains constant, regardless of the level of production or sales. Among the options provided, the example of fixed cost is "Rent on building". This cost does not vary with the level of production or sales, and it is a necessary expense that must be paid even if the business is not generating any revenue. In contrast, the other options provided are examples of variable costs, as they tend to increase or decrease with the level of production or sales.
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