________ are costs that a company incurs whether it sells something or not. ________ are the costs a company incurs as it generates sales.
A) Preset costs, marginal costs
B) Variable, fixed costs
C) Set costs, marginal costs
D) Fixed costs, variable costs
E) Marginal costs, set costs

Question

Quizplus · Accepted Answer

Fixed costs are the costs that a company incurs regardless of whether they sell anything or not, while variable costs are the costs that are tied to sales and increase as sales increase, which are also known as marginal costs. Therefore, the correct answer is D) Fixed costs, variable costs.

________ Are Costs That a Company Incurs Whether It Sells