# For a construction company, would the $50,000 annual salary paid to its construction supervisor...

## Question:

For a construction company, would the $50,000 annual salary paid to its construction supervisor be considered a fixed or variable cost? Explain.

## Cost Types:

The overall costs for a firm are usually classified into various categories to facilitate analysis at a granular level. These classifications could be product costs & period costs, fixed costs & variable costs, or manufacturing costs & operating costs.

## Answer and Explanation: 1

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View this answerThe annual salary of $50,000 paid to the construction supervisor is a fixed cost because it does not vary proportionately with the production volume...

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Chapter 9 / Lesson 25Learn about cost structures. Understand what a cost structure is, explore its role and importance in a business plan, and see an example of a cost structure.

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