Asked by Maricris Tersol on Jul 11, 2024
Verified
Each of the following is a fixed cost except
A) hourly wages.
B) rent.
C) interest payments.
D) insurance premiums.
Hourly Wages
The sum of money an employee receives for working one hour.
Fixed Cost
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.
- Acquire knowledge on differentiating between fixed and variable costs.
Verified Answer
MG
MaKayla goertzJul 17, 2024
Final Answer :
A
Explanation :
Hourly wages are a variable cost since they vary with the number of hours worked. Rent, interest payments, and insurance premiums are all fixed costs since they remain the same regardless of the level of production or sales.
Learning Objectives
- Acquire knowledge on differentiating between fixed and variable costs.