Fixed costs are:
A)costs that are not worth the effort to trace to a specific cost object.
B)costs that change,in total,in direct proportion to changes in activity levels.
C)always irrelevant.
D)costs that remain constant,in total,no matter the activity level.

Question

Quizplus · Accepted Answer

Fixed costs are costs that remain constant, in total, no matter the activity level. This means that even if there is an increase or decrease in production or sales, fixed costs will remain the same. Examples of fixed costs include rent, salaries, and insurance premiums.

Fixed Costs Are