Total fixed costs can be expressed as y = vx, where y = total variable cost, v = variable cost per unit of activity, and x = volume of activity.

Name: Total fixed costs can be expressed as y = vx, where y = total variable cost, v = variable cost per unit of activity, and x = volume of activity.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

Total fixed costs do not depend on the volume of activity, so they cannot be expressed as y = vx. Fixed costs are constant regardless of the level of activity.

Total Fixed Costs Can Be Expressed as Y = Vx