Costs that do not vary over a given range of output are referred to as ____ costs.
A)variable
B)fixed
C)incremental
D)marginal

Question

Quizplus · Accepted Answer

Fixed costs are those that do not change with changes in the level of output. They remain constant within a certain range of activity, and they include expenses such as rent, salaries and insurance. Variable costs, on the other hand, are expenses that vary with the level of output, while incremental costs are the additional costs incurred by producing one more unit of output. Marginal costs are the change in total cost that result from producing one more unit of output.

Costs That Do Not Vary Over a Given Range of Output