Costs that do NOT vary with production levels are called:
A) Non-operating cost
B) Variable cost
C) Fixed cost
D) Permanent cost

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with production levels, regardless of whether there is high or low production. Non-operating costs are costs that are not related to the day-to-day operations of a business, and variable costs are costs that vary with production levels. Permanent cost is not a commonly used term in accounting and finance.

Costs That Do NOT Vary with Production Levels Are Called