Which of the following most accurately describes a fixed cost?
A) A fixed cost is not affected by inflation.
B) A fixed cost remains the same from year to year.
C) A fixed cost remains the same, regardless of the level of output.
D) A fixed cost involves the purchase of non-current assets.

Question

Quizplus · Accepted Answer

A fixed cost remains constant regardless of the level of output or production, meaning it does not change with the volume of goods or services produced.

Which of the Following Most Accurately Describes a Fixed Cost