Which of the following costs does not change in total despite changes in volume?
A) Fixed cost
B) Variable cost
C) Mixed cost
D) Total production cost

Question

Quizplus · Accepted Answer

Fixed cost is a cost that remains constant in total regardless of changes in volume, such as rent or salaries. Variable costs, on the other hand, increase or decrease with changes in activity, and mixed costs have both fixed and variable components. Total production cost is the sum of both fixed and variable costs, therefore it will change with changes in volume.

Which of the Following Costs Does Not Change in Total