which of the following is an en example of fixed cost? labor cost associated with the...

which of the following is an en example of fixed cost?

labor cost associated with the production of a new product

shipping cost associated with the sale of a new product

coat of equipment purchased for an assembly line to be used in the production kf a new product

assembly costs associated with the production kf a new product

Expert Solution

Fixed cost is the cost which are of fixed nature. Such costs will be incurred irrespective of the business activies such a production'sales. They are not dependent on the level of goods or services produced by the business.

Labour cost associated with the production of a new product is not a fixed cost as this cost will not be levied in case of no production of product.
Shipping cost associated with the sale of a new product is not a fixed cost as this cost will not be levied in case of no sale of product.
Cost of Equipment purchased for an assembly line to be used in the production of a new product is fixed costs as it will be levied irrespective of sales/ production.
Since the costs are associated with the production of a new product, assembly cost is not a fixed cost.

jeff jeffy answered 2 years ago

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