Business FinancesQuestion 42 of 690
Which of the following is considered a FIXED cost for a contracting business?
a.Subcontractor fees
b.Materials for a specific job
c.Fuel for equipment
d.Office rent
Explanation
Fixed costs remain constant regardless of business volume. Office rent, insurance premiums, and loan payments are fixed. Materials, subcontractors, and job-specific fuel are variable costs.
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