Answer (D) is correct . A fixed cost is one that remains unchanged within the relevant range for a given period despite fluctuations in activity. Such items as rent, property taxes, depreciation, and supervisory salaries are normally fixed costs because they do not vary with changes in production. Power costs, however, are at least partially variable because they increase as usage increases.
Answer (A) is incorrect because Rent is an example of fixed factory overhead.
Answer (B) is incorrect because Property taxes are an example of fixed factory overhead.
Answer (C) is incorrect because Depreciation is an example of fixed factory overhead.
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