Which of the following statements about fixed costs is correct?

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with changes in the level of output or sales. These costs must be paid regardless of the level of production or the amount of sales. Option A is incorrect because fixed costs can be opportunity costs, such as the cost of using idle resources. Option C is incorrect because the proportion of fixed costs to total costs varies across industries and firms.

Which of the Following Statements About Fixed Costs Is Correct