Which of the following is a fixed cost?
A)A cost that is $28.00 per unit when production is 70,000,and $28.00 per unit when production is 112,000.
B)A cost that is $28.00 per unit when production is 70,000,and $17.50 per unit when production is 112,000.
C)A cost that is $28.00 per unit when production is 70,000,and $56.00 per unit when production is 112,000.
D)A cost that is $56.00 per unit when production is 70,000,and $56.00 per unit when production is 112,000.

Question

Quizplus · Accepted Answer

A fixed cost remains constant in total regardless of changes in the level of production. In option B, the per-unit cost decreases as production increases, indicating that the total cost remains constant, which is characteristic of a fixed cost.

Which of the Following Is a Fixed Cost