Fixed cost refers to
A) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold
B) the total expense incurred by a firm in producing and marketing a product, which equals the sum of overhead cost and variable cost.
C) the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
D) the average amount of money received for selling one unit of a product or simply the price of that unit.
E) the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.

Question

Quizplus · Accepted Answer

Fixed cost refers to the sum of expenses that do not vary with the quantity of a product that is produced and sold. These expenses remain constant regardless of the level of production or sales. Examples of fixed costs include rent, salaries, insurance, and property taxes.

Fixed Cost Refers to