________ costs are incurred over time, regardless of volume, whereas ________ costs fluctuate with volume.
A) Fixed; variable
B) Variable; fixed
C) Total; variable
D) Variable; total
E) Marginal; total

Question

Quizplus · Accepted Answer

Fixed costs are those that stay constant over time, regardless of production volume. Examples include rent, salaries, and insurance. Variable costs, on the other hand, vary with production volume. Examples of variable costs include raw materials, hourly wages, and utilities.

________ Costs Are Incurred Over Time, Regardless of Volume, Whereas