Costs that remain constant in total dollar amount as the level of activity changes are called ________ costs.
A)fixed
B)mixed
C)product
D)variable

Question

Quizplus · Accepted Answer

Fixed costs remain constant in total dollar amount regardless of changes in the level of activity. Examples include rent, salaries, and insurance. Variable costs change with activity levels, mixed costs have both fixed and variable components, and product costs are costs associated with producing goods.

Costs That Remain Constant in Total Dollar Amount as the Level