Question

Which of the following is an example of a fixed cost? A. Rent for an office B. Materials for providing a service C. Paychecks for hourly employee wages D. Packaging and shipping products to customers.

Answer 1

a fixed cost is business costs, such as rent, that are constant whatever the quantity of goods or services produced. So I think that it's A

Answer 2

Answer: A. Rent for an office

Fixed costs are operating expenses that are unavoidable, regardless of the level of production. They are the opposite of variable costs, which do vary depending on the level of production or sales.

Fixed costs show little fluctuation from period to period, and they include things such as insurance, rent and property taxes.