Fixed costs are expressed ________ because that is the amount of cost that is truly fixed.
A)on a per unit basis
B)in total
C)on a per unit basis within the relevant range
D)as a percentage of sales

Question

Quizplus · Accepted Answer

Fixed costs are independent of the level of production, therefore they do not change on a per unit basis. They are stated in total, as a lump sum amount that remains constant within the relevant range of production. Fixed costs cannot be accurately expressed as a percentage of sales, as they are not directly related to the level of sales.

Fixed Costs Are Expressed ________ Because That Is the Amount