Which of the following is typically a fixed cost?

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Multiple Choice

Which of the following is typically a fixed cost?

Explanation:
Fixed costs stay the same regardless of how much activity you have. The monthly rent on a store fits this because it’s a set amount paid each month whether sales are up or down. That constancy is what makes it a fixed cost. In contrast, costs tied to usage or activity vary: hourly wages change with the number of hours worked, gas for a vehicle varies with how much you drive, and maintenance fees often depend on service needs or usage.

Fixed costs stay the same regardless of how much activity you have. The monthly rent on a store fits this because it’s a set amount paid each month whether sales are up or down. That constancy is what makes it a fixed cost.

In contrast, costs tied to usage or activity vary: hourly wages change with the number of hours worked, gas for a vehicle varies with how much you drive, and maintenance fees often depend on service needs or usage.

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