All of the following are true regarding fixed costs except which one?

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with changes in output or sales. They include expenses such as rent, salaries, and insurance that are not dependent on the level of production or sales. Option A is incorrect because fixed costs are associated with fixed inputs only. Option B is incorrect as it confuses fixed costs with total costs. Option C is also incorrect as fixed costs are not equal to the total cost plus variable costs; they are equal to total costs minus variable costs. Therefore, the correct answer is option C.

All of the Following Are True Regarding Fixed Costs Except