The costs that occur when the number of units produced is equal to zero are called the ____ costs.
A) Variable
B) Fixed
C) Incremental
D) Opportunity
E) Non-cash

Name: The costs that occur when the number of units produced is equal to zero are called the ____ costs. A) Variable B) Fixed C) Incremental D) Opportunity E) Non-cash
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Question

Quizplus · Accepted Answer

Fixed costs are the costs that do not change with the level of production. They are incurred even when no units are produced, such as rent, salaries, and insurance.

The Costs That Occur When the Number of Units Produced