Which of the following statements is true about fixed costs?
A) They can be assigned to a specific item sold or manufactured.
B) They are unaffected by changes in output.
C) They increase as the number of units produced increases.
D) They include expendables.

Question

Quizplus · Accepted Answer

Fixed costs are costs that remain constant regardless of changes in output, so choice B is the correct statement. Choices A, C, and D are incorrect as fixed costs cannot be assigned to a specific item sold or manufactured, they do not increase as the number of units produced increases, and they do not include expendables.

Which of the Following Statements Is True About Fixed Costs