contestada

"A fixed cost is a cost which Select one: a. varies in total with changes in the level of activity. b. remains constant per unit with changes in the level of activity. c. varies inversely in total with changes in the level of activity. d. remains constant in total with changes in the level of activity."

Respuesta :

jepessoa

Answer:

D) remains constant in total with changes in the level of activity.

IT SHOULD SAY: REMAINS CONSTANT REGARDLESS OF CHANGES IN THE LEVEL OF ACTIVITY, but it is close enough.

Explanation:

Fixed costs are costs that remain unchanged regardless of the company's activity level. The total output may increase or decrease, resulting in an increase or decrease of variable costs, but the fixed costs remain the same. Fixed costs include depreciation of machinery and equipment, rent, insurance, etc.

Otras preguntas