Which is a fixed cost?
A. rent
B. labor
C. raw materials
D. heating fuel
rent
labor
The fixed cost is an expense that remains constant regardless of the level of production or the number of units produced. Among the given options, the fixed cost would be:
A. Rent
To determine this, you can identify the characteristics of a fixed cost. Fixed costs are expenses that do not change with production levels in the short term. Rent is an example of a fixed cost because it remains the same regardless of how many units a company produces. It needs to be paid whether the company is producing one unit or a thousand units. Therefore, the correct answer is A. rent.