Question

Which is a fixed cost? A. rent B. labor C. raw materials D. heating fuel

Answer 1

The answer is A. rent . Also some other fixed cost is buildings and machinery. Hope this helps

Answer 2

Answer:

Option A, Rent

Explanation:

Rent is the fixed cost.  

Cost of any input item in production of an entity that does not vary with the amount of produce is called as fixed cost.

For example -

If an industry that has taken a land on rent for $100/month, intends to produce 100 glass vases per month.  

Now if suddenly the management decides to reduce the production up to 50 glass vase per month, then cost of all raw material except the rent will remain the same irrespective of the quantity of produce.  

Hence, rent is the fixed cost.