Which of the following is unlikely to be classified as a fix

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold? Multiple Choice Cost of (a)leasing the company’s mainframe computer. (b)Legal department salaries. (c)Property taxes on a headquarters building.(d) Production supplies

Solution

Answer is d Production supplies.
It is not a fixed costs, because it varies with production unlike above all are not dependent on production. So a,b,c are Fixed costs. Fixed osts means is fixed and it has to incurr even if there is no production. Even there is more production. It not dependent on no of units produced.

The only one which is dependent on No of units producing is Production supplies