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Question
which two items are examples of fixed costs for a business? (choose 2.)
a. rent
b. insurance
c. commissions
d. credit card payments
Brief Explanations
Fixed costs are business expenses that stay constant regardless of production or sales volume. Rent is a fixed, recurring payment that does not change with business activity levels. Insurance premiums are also set, regular costs that do not fluctuate based on output or sales. Commissions and credit card payments vary with sales volume, so they are variable costs.
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A. Rent
B. Insurance