Fixed costs remain constant in a relevant range of activity.

Name: Fixed costs remain constant in a relevant range of activity.
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not vary with changes in the level of activity or production. They remain constant within a relevant range of activity. For example, the rent of a store or the salary of a supervisor are fixed costs that do not change whether the store sells 100 or 1000 units of products.

Fixed Costs Remain Constant in a Relevant Range of Activity