Total fixed cost is
A) the cost of buying and installing new machinery.
B) the cost that does not change as output changes.
C) the expenditure on imported raw materials.
D) the wages paid to consultants.

Question

Quizplus · Accepted Answer

Total fixed cost is defined as the cost that does not change as production/output changes. It includes costs like rent, insurance, property taxes, salaries of permanent employees, etc. Other options represent different types of costs that may be incurred in a business but are not necessarily classified as fixed costs specifically.

Total Fixed Cost Is