Registered Dietitian

Answer: A - FICA is an example of a fixed cost. Because it is a type of tax, FICA is a fixed cost that is not dependent on daily operations or sales.

A mixed cost includes both direct and indirect elements, such as utility bills, which include a fixed monthly fee and the variable cost of usage. A direct cost is one that varies directly with sales (such as food), and a sunk cost is one that has occurred in the past and cannot be recovered.