Capital costs are usually
A)variable costs that directly depend on the level of production.
B)fixed costs that do not directly depend on the level of production.
C)negligible compared with operating costs.
D)the most important factor in determining the economic life of an asset.
E)costs of administrative overhead.

Question

Quizplus · Accepted Answer

Capital costs are typically fixed costs, such as the purchase of equipment or buildings, which do not vary with the level of production.

Capital Costs Are Usually