Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides. Dizzy employees a certified operator for each of its 35 rides. Each operator is paid $20 per hour. The cost of the certified operators would best be described as a: Multiple Choice true variable cost step-variable cost mixed cost fixed cost

Costs are termed as the expense that is incurred at the moment of procurement of the raw materials to the moment of the production of the final goods and continuing this journey till the selling and distribution of the final goods.  

The correct answer is D. fixed cost

The term "fixed cost" in the case of a corporation refers to expenses that are unrelated to the company's manufacturing capacity. This means that, to a significant degree, these expenditures stay constant regardless of whether the business's output and profitability fall or grow.

The sum paid to each operator at Dizzy Adventure Park is a set expense incurred by the company. It's a set fee that needs to be paid ignoring whether the resort sees an increase or reduction in visits. This type of expense is comparable to the rent and insurance expenses incurred by the company.

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D. fixed cost

Explanation:

The fixed cost in a business refers to those costs that are independent of the production output in the business. This means that to a large extent, these costs remain constant whether there is a decrease or increase in output and profit in the business.

In the case of Dizzy Amusement Park, the amount paid to each operator is a fixed cost accrued from the business. It is an agreed-upon price that must be paid whether the park records an increase or decrease in visitors. This kind of cost is in the same category as the rent and insurance fees accrued from the business.

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