Costs related to the building and equipment of a business are referred to as
A) economies of scale.
B) variable costs.
C) fixed costs.
D) joint costs.
E) scalable costs.

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with the quantity of goods or services produced, such as rent, salaries, and equipment. These costs are necessary to start and operate a business, regardless of its level of production or sales.

Costs Related to the Building and Equipment of a Business