Which of the following is a fixed cost?

• A. Salaries
• B. Utilities
• C. Supplies
• D. Maintenance contracts

Answer: (A)

Fixed costs stay the same in the short term regardless of activity level. Salaries are paid at a fixed rate as part of contractual compensation, so the total payroll doesn't fluctuate with the number of students or how much the district uses services in a given period. Utilities change with usage and weather, supplies vary with how much is needed, and maintenance contracts are often set at a regular fee but can be viewed as semi-fixed or variable depending on terms. The most straightforward example of a fixed cost among these is salaries, since they’re usually predictable and constant month to month.