The difference between fixed and variable costs is that:
A)variable costs move up and down with changes in sales while fixed costs remain constant.
B)variable costs are only found in factory operations while fixed costs occur only in expenses.
C)fixed costs are the costs of fixed assets, everything else is a variable cost.
D)Both a and b

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of changes in sales or production levels, while variable costs increase or decrease with sales or production levels. The distinction between fixed and variable costs is not limited to a specific type of expense or operation.

The Difference Between Fixed and Variable Costs Is That