A cost is $50,000 when 25,000 units are produced,and $50,000 when 50,000 units are produced.This is an example of a(n):
A)fixed cost.
B)direct cost.
C)variable cost.
D)indirect cost.

Question

Quizplus · Accepted Answer

A fixed cost remains constant regardless of the level of production or sales. In this case, the cost remains the same at $50,000 whether 25,000 or 50,000 units are produced, indicating it is a fixed cost.

A Cost Is $50,000 When 25,000 Units Are Produced,and $50,000