Fixed costs ________.
A) are costs that do not vary with production or sales level
B) vary directly with the level of production
C) decrease with accumulated production experience
D) are the sum of the overhead and variable costs for any given level of production
E) represent the annual costs of inputs incurred by a company

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with production or sales level. They are constant expenses that companies must pay regardless of how much they produce or sell. Examples of fixed costs include rent, salaries, and insurance premiums.

Fixed Costs ________