In contrast to a variable cost
A)The total amount of a fixed cost does not change with activity level.
B)The total amount of a fixed cost increases as activity increases.
C)The per unit amount of a fixed cost does not change with activity level.
D)The per unit amount of a fixed cost increases as activity increases.

Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant regardless of the level of activity or production. Its total amount does not change with an increase or decrease in the level of activity.

In Contrast to a Variable Cost