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.
Exam with this question: IoT Connecting Things 2.0 – Chapter 6 Quiz Answers
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