Question

In the podcast, Manufacturing the Song of the Summer, the songs on Rihanna's album were written at a writing camp. The Planet Money team calculated the cost of the writing camp at $200,000 and referred to this as the 'overhead,' which includes the costs of the recording studios, hotel rooms, etc. all before Rihanna comes to the studio to make one song. This is an example of what kind of cost?

Answer 1

fixed cost

Step-by-step explanation:

given data

cost of the writing camp = $200,000

solution

As cost includes recording studios cost and hotel rooms etc

so this cost is fix cost because fixed cost does not change with the increase or decrease in the quantity of goods or services produced or sold. Fixed costs are expenses that a company must pay independently of any specific business activity.