Fixed production costs are:
A) directly related to labor costs.
B) measured as cost per unit of time.
C) measured as cost per unit of output.
D) dependent on the amount of goods or services produced.

Question

Quizplus · Accepted Answer

Fixed production costs are costs that do not change with the level of output. They are typically measured as a cost per unit of time, such as rent or salaries, which remain constant regardless of how much is produced.

Fixed Production Costs Are