Costs that are unaffected by the quantity of a product sold are ________ costs.
A) variable
B) selling
C) fixed
D) on-going

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with the quantity of a product sold. These costs are incurred regardless of whether the business produces one unit or a million units of a product. Examples of fixed costs include rent, salaries of permanent employees, and depreciation of equipment.

Costs That Are Unaffected by the Quantity of a Product