From the choices below,pick the best definition of the term fixed costs.
A) setting a price for a product and sticking to it
B) the cost of acquiring fixed assets
C) costs that are unaffected by the number of goods sold by the firm
D) cost that seem to stay the same from year to year

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with changes in the quantity of output produced or sold by a business. These costs are not affected by the level of activity or the number of goods or services produced by a firm. Examples include rent, insurance, depreciation, salaries, and property taxes.

From the Choices Below,pick the Best Definition of the Term