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For a company which produces its products in batches, the CEO's salary is a(n) ________ cost?

1) Fixed
2) Variable
3) Direct
4) Indirect

1 Answer

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Final answer:

The CEO's salary for a company that produces its products in batches is a fixed cost.

Step-by-step explanation:

The CEO's salary for a company that produces its products in batches is a fixed cost.

Fixed costs are the costs that a company incurs before producing any output, and they do not change regardless of the level of production. The CEO's salary is a fixed cost because it remains the same even if the company produces different batches of products.

Other examples of fixed costs include rent for a factory or retail space, machinery or equipment costs, and research and development costs.

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