The correct option is D. Costs that are fixed are those that don't change based on volume. The majority of fixed costs are expenses that depend more on time than they do on how much your company produces or sells. A paper cutting machine.
What are variable costs and fixed costs?
Depending on how much is produced, variable costs change. Labor, commissions, and raw materials are examples of variable expenses. Regardless of production output, fixed costs stay the same. Payments for insurance, rent or lease, and interest are examples of fixed costs.
Thus, A paper cutting machine is a fixed cost while the paper and glue to make the cards, Hourly workers who assemble and ship the cards, and Packaging and shipping costs are variable. For the duration of production, fixed costs are those that are predetermined. However, if the number of employees rises or falls, wages given to workers may change. It is not regarded as a fixed expense as a result.
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