Minnie & Mickey Mouse are opening a cookie shop. They must purchase an oven for their business. What type of cost is the purchase of the oven?

Question

*
A. A variable cost
B. A fixed cost
C. An opportunity cost
D. A dependent cost

I chose D.

Answer 1

The correct answer is B. A fixed cost, because it is a one-time expense that remains the same regardless of the number of cookies produced or sold.