Which of the following is true with regard to fixed costs and variable costs?
A)Fixed costs are those costs that remain constant regardless of the volume produced.
B)Variable costs are those costs that remain constant irrespective of the output level.
C)Variable costs are those costs that remain constant regardless of the time of manufacture.
D)Variable costs are those costs that remain constant regardless of the price of the product.

Question

Quizplus · Accepted Answer

Fixed costs are those costs that remain constant regardless of the volume produced. Variable costs, on the other hand, change with the volume produced. Option B is incorrect as it defines fixed costs instead of variable costs. Option C and D are also incorrect as they do not accurately define variable costs.

Which of the Following Is True with Regard to Fixed