Costs incurred regardless of the number of units of a product that are produced or sold are called:
A) mixed costs.
B) controllable costs.
C) fixed costs.
D) variable costs.
E) indirect costs.

Question

Quizplus · Accepted Answer

Fixed costs are those costs that remain constant regardless of the level of production or sales. Examples of fixed costs include rent, property taxes, insurance, and salaries of salaried employees.

Costs Incurred Regardless of the Number of Units of a Product