Fixed costs ________.
A)are fixed on a per-unit basis,but vary in total
B)vary on a per-unit basis,but are fixed in total
C)are fixed on a per-unit basis,and fixed in total
D)vary on a per-unit basis,and vary in total

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with changes in the level of output, such as rent or insurance. They do not change per unit but remain constant in total, regardless of the level of production. Therefore, option B is the correct answer as fixed costs are fixed in total but vary on a per-unit basis.

Fixed Costs ________