Fixed costs can be defined as costs that:
A)are incurred only when production is large enough
B)are unaffected by production
C)vary inversely with production
D)vary at a fixed rate with production

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with changes in production levels, such as rent, salaries, insurance, and property taxes. These costs remain constant over a specific period or range of activity levels, regardless of whether a company produces or sells anything.

Fixed Costs Can Be Defined as Costs That