Costs that do not vary with production or sales level are referred to as .
A)variable costs
B)fixed costs
C)total costs
D)unit costs
E)target costs

Question

Quizplus · Accepted Answer

Fixed costs are not directly dependent on the level of production or sales, meaning they do not vary as these factors change. Variable costs, on the other hand, do change as production or sales levels change. Total costs refer to the sum of fixed and variable costs. Unit costs are the total cost per unit of production or sales. Target costs are the desired cost level for a product, based on market demand and expected profit margins.

Costs That Do Not Vary with Production or Sales Level