Which of the following statements is true concerning the fixed component of power cost?
A)This would be categorized as a unit level activity.
B)This is a cost that would be incurred regardless of the level of output.
C)This would be categorized as a facility-related cost.
D)both "b" and "c"

Question

Quizplus · Accepted Answer

The fixed component of power cost is a cost that would be incurred regardless of the level of output, making it a facility-related cost. Therefore, both option "b" and "c" are correct. It is not a unit level activity, so option "a" is incorrect.

Which of the Following Statements Is True Concerning the Fixed