Which of the following best describe the term ﬁxed costs.
A) The percentage change in operating cash ﬂow relative to the percentage change in quantity sold.
B) The sales level that results in a zero NPV.
C) Costs that do not change when the quantity of output changes during a particular time period.
D) The possibility that errors in projected cash ﬂows lead to incorrect decisions.
E) Opportunities that managers can exploit if certain things happen in the future.

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with the quantity of output produced or sold during a given time period.

Which of the Following Best Describe the Term ﬁXed Costs