What is the best definition of the term fixed costs?
A) Costs that are needed to acquire a fixed market share
B) Costs that are needed to acquire fixed profits
C) Costs that are unaffected by the number of goods sold by the firm
D) Costs that remain the same from year to year
E) Costs that remain the same across all products

Question

Quizplus · Accepted Answer

Fixed costs are those which do not vary with the level of production or sales. These are costs that remain the same regardless of the quantity produced or sold. Examples of fixed costs include rent, salaries, and insurance premiums. The other options are not accurate definitions of fixed costs.

What Is the Best Definition of the Term Fixed Costs