22
QuizMultiple Choice

Final Test

Question 22 • Introduction to Business A

Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to customers?

Answer
A
The paper and glue to make the cards
B
Hourly workers who assemble and ship the cards
C
Packaging and shipping costs
D
A paper cutting machine

Explanation

A fixed cost stays about the same regardless of how many cards the company makes or sells. The paper cutting machine is an equipment cost, unlike paper and glue, hourly labor, and packaging and shipping, which generally increase with the number of cards produced or mailed. Therefore, the paper cutting machine is the fixed cost.

AI-written and checked against the verified answer.

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