________ are costs that a company incurs whether it sells something or not. ________ are the costs a company incurs as it generates sales.
A) Preset costs, Marginal costs
B) Variable costs, Fixed costs
C) Set costs, Marginal costs
D) Fixed costs, Variable costs
E) Marginal costs, Set costs

Question

Quizplus · Accepted Answer

Fixed costs are costs that a company incurs regardless of sales volume, such as overhead costs like rent or salaries. Variable costs, on the other hand, are costs that increase as sales increase, such as material costs or sales commissions.

________ Are Costs That a Company Incurs Whether It Sells