Fixed costs can be defined as costs that
A)vary inversely with production.
B)vary in proportion with production.
C)are incurred only when production is large enough.
D)are incurred even if nothing is produced.

Question

Quizplus · Accepted Answer

Fixed costs are costs that remain constant regardless of the level of production. They are incurred even if nothing is produced. Examples of fixed costs include rent, insurance, and salaries for employees who are not directly involved in production.

Fixed Costs Can Be Defined as Costs That