Which of the following is a characteristic of a fixed cost?
A)The total cost remains constant,regardless of changes in the level of activity.
B)The cost per unit varies inversely with changes in the level of activity.
C)Both that the total cost remains constant,regardless of changes in the level of activity and that the cost per unit varies inversely with changes in the level of activity.
D)Neither that the total cost remains constant,regardless of changes in the level of activity nor that the cost per

Question

Quizplus · Accepted Answer

A fixed cost is a cost that remains constant, regardless of changes in the level of activity or production. It does not vary per unit of output, but remains the same in total.

Which of the Following Is a Characteristic of a Fixed