Fixed expenses:
A) Create risk.
B) Can be an advantage when a company is growing.
C) Include interest expense.
D) Do not fluctuate with changes in sales.
E) All of these.

Question

Quizplus · Accepted Answer

Fixed expenses do not fluctuate with changes in sales, can include interest expense, and while they create risk due to their constant nature regardless of business performance, they can also be an advantage during periods of growth as they do not increase with increased sales, allowing for potentially higher margins.

Fixed Expenses