Which of the following statements is TRUE regarding fixed and variable costs?

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with the level of production or sales, such as rent or salaries. These costs remain constant in total, but may vary on a per-unit basis depending on the level of production. Variable costs, on the other hand, vary with the level of production, such as raw materials or direct labor. These costs remain constant on a per-unit basis, but may vary in total depending on the level of production. Therefore, choice C is the only statement that accurately reflects the nature of fixed and variable costs.

Which of the Following Statements Is TRUE Regarding Fixed and Variable