A cost that remains the same in total even when volume of activity varies is a:
A) Fixed cost.
B) Curvilinear cost.
C) Variable cost.
D) Step-wise variable cost.
E) Standard cost.

Question

Quizplus · Accepted Answer

A cost that remains constant even when the volume of activity changes is known as a fixed cost. Fixed costs are not affected by changes in production or sales volume. Examples include rent, insurance premiums, and salaries of management personnel.

A Cost That Remains the Same in Total Even When