Which of the following best defines fixed costs?
A) Costs that are needed to acquire a fixed market share
B) Costs that are needed to acquire fixed profits
C) Costs that are unaffected by the number of goods sold by the firm
D) Costs that remain the same from year to year
E) Costs that remain the same across all products

Question

Quizplus · Accepted Answer

Fixed costs are costs that remain the same regardless of the level of production or sales. They are not affected by the number of goods sold by the firm. Examples of fixed costs include rent, salaries, insurance premiums, and property taxes. Fixed costs are important for businesses to consider when setting prices and determining profitability.

Which of the Following Best Defines Fixed Costs