Question 1
Which of the following is an example of a fixed cost?
◦ Cost of raw materials
◦ Cost of supplies
◦ Shipping costs
◦ Cost of insurance premiums
◦ Cost of building plants
Question 2
Which of the following is an example of a variable cost?
◦ Insurance premiums
◦ Real estate taxes
◦ Unit-based incentives
◦ Inventory
◦ Mortgage payments