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Commercial Pilot Licence (CPAER) – Canada · Question

A production line supervisor's salary is best described as what type of cost when considering the production volume?

A supervisor's salary is generally a fixed cost within a relevant range, as it does not change in total with fluctuations in the number of units produced. It is

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Question: A production line supervisor's salary is best described as what type of cost when considering the production volume?

Answer options:

  • Variable cost. ✅ Fixed cost.
  • Mixed cost.
  • Opportunity cost.

Correct answer: Fixed cost.

Explanation: A supervisor's salary is generally a fixed cost within a relevant range, as it does not change in total with fluctuations in the number of units produced. It is incurred regardless of volume, up to a certain capacity.

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