What do we know about fixed costs
A)They vary inversely with production.
B)They vary in proportion with production.
C)They are incurred only when production is at capacity.
D)They are incurred even if nothing is produced.

Question

Quizplus · Accepted Answer

Fixed costs are costs that remain constant regardless of the level of production. They are incurred even if nothing is produced, such as rent, salaries, insurance, etc. Therefore, option D is correct, and the other options are incorrect.

What Do We Know About Fixed Costs