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

Question

Quizplus · Accepted Answer

A fixed cost remains constant regardless of changes in activity level. Its total amount does not change; therefore, it is not affected by production volume or sales. The per unit amount of a fixed cost decreases as activity level increases, as the fixed cost is spread over a larger number of units.

In Contrast to a Variable Cost