Fixed production costs are:
A) directly related to labor costs.
B) measured as cost per unit of time.
C) measured as cost per unit of output.
D) dependent on the amount of goods or services produced.
E) None of these.

Question

Quizplus · Accepted Answer

Fixed production costs are measured as cost per unit of time because they do not change with the level of output produced. They remain constant regardless of the quantity of goods or services produced.

Fixed Production Costs Are