At a plant where a union agreement sets annual salaries and conditions, annual labor costs usually: A. Are considered a variable cost B. Are considered a fixed cost C. Depend on the scheduling of floor workers D. Depend on the scheduling of production runs

The correct answer is letter "B": Are considered a fixed cost.

Explanation:

Fixed costs are business expenses that do not change when production levels increase or decrease. They are one of two types of business expenses the other being variable costs. Variable costs do change as the volume of production changes.

Thus, if in a company a union sets the wages of employees annually, those amount will not change in the course of the period, Then, they can be considered fixed costs.

years agooo ahaha. but honestly they need to update ! : )