Fixed costs:
A) are a constant percentage of sales revenues.
B) vary with the level of depreciation expense.
C) are constant with changes in the level of output.
D) are inversely related to the level of output.

Question

Quizplus · Accepted Answer

Fixed costs are constant with changes in the level of output. They do not vary with sales revenues or depreciation expense, and they are not inversely related to the level of output.

Fixed Costs