Total fixed cost
A) is dependent on production volumes.
B) stays the same even if production stops temporarily.
C) includes wages and sales commissions.
D) is the sum of average fixed costs and variable overheads.
E) is dependent on minor changes in output volume.

Question

Quizplus · Accepted Answer

Total fixed cost refers to expenses that remain the same regardless of production levels. Therefore, option B is the correct statement. The choice A, C, D, and E are incorrect as these options do not correctly define total fixed cost.

Total Fixed Cost