A fixed cost is fixed only in relation to a given wide range of total activity or volume and only for a given
time span, usually a particular budget period.

Question

Quizplus · Accepted Answer

Fixed costs are incurred regardless of the level of activity or volume, but they may change over time, for example, due to changes in the price of rented space or insurance premiums. Therefore, they are fixed only in relation to a given range of activity or volume and only for a certain period, usually a budget period.

A Fixed Cost Is Fixed Only in Relation to a Given