Southern Food Service Operates Six Restaurants in the Atlanta Area

Multiple Choice

Southern Food Service operates six restaurants in the Atlanta area.The company pays rent of $20,000 per year for each shop.The managers of each shop are paid a salary of $4,200 per month and all other employees are paid on an hourly basis.Relative to the number of hours worked,total compensation cost for a particular shop is which kind of cost?

A) Mixed cost
B) Fixed cost
C) Variable cost
D) None of these