Fixed costs that change for activity outside the relevant range would include
A)depreciation.
B)electricity costs.
C)production supplies costs.
D)raw materials costs.

Question

Quizplus · Accepted Answer

Fixed costs such as depreciation typically do not vary with changes in output volume or activity within the relevant range. However, if an activity causes a need for additional equipment or upgrades, then depreciation costs may also change. Therefore, while depreciation is a fixed cost, it may change outside the relevant range. Electricity costs, production supplies costs, and raw materials costs are examples of variable costs that can change with a change in production level or activity within the relevant range.

Fixed Costs That Change for Activity Outside the Relevant Range