Which of the Following Costs Would Be a Fixed Cost

question 4

Multiple Choice

Which of the following costs would be a fixed cost for Shaun, a knitwear manufacturer?

• A) Purchasing wool
• B) Labour cost: knitting machine operators
• C) Factory rent
• D) Labels and packaging

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Definitions:

Medicaid Coverage

A joint federal and state program in the United States that helps with medical costs for some people with limited income and resources.

Patient Protection And Affordable Care Act

United States federal statute enacted in 2010 aimed at expanding health insurance coverage, lowering healthcare costs, and improving healthcare system efficiency and patient care.

National Health Insurance

A program in which a nation’s government provides a basic package of health care to all citizens at no direct charge or at a low cost-sharing level. Financing is out of general tax revenues.

Nonprice Rationing

Refers to the distribution of goods and services based on criteria other than price, such as waiting times or ration coupons.