Fill in the blank. Rent is an example of a _ cost because it does not change based on the amount of product produced.

Last Updated: May 5, 2022
IT Exam Items Repository › Category: IoT Connecting Things › Fill in the blank. Rent is an example of a _ cost because it does not change based on the amount of product produced.

Fill in the blank.
Rent is an example of a ___ cost because it does not change based on the amount of product produced.

Correct Answer:

  • fixed
  • fix
  • fixed cost

Explanation: There are two types of business costs: fixed costs and variable costs. Fixed costs are those that do not change based on the amount of product produced. Because the rent of a facility does not go up or down based on production, rent is a fixed cost.

Related exam: IoT Connecting Things 2.0 – Chapter 6 Quiz Answers

About The Author

ITExamAnswers Editorial Team

The ITExamAnswers Editorial Team is a dedicated group of certified IT professionals and network engineers. We rigorously review, verify, and update all exam materials to ensure you receive the most accurate and reliable resources for your certification journey.