Respuesta :
As cost driver level decreases in the relevant range, fixed costs per unit of cost driver in total but total fixed costs per unit of cost driver.
What exactly is a fixed cost?
- Share. Fixed costs are costs that remain constant regardless of whether sales or production volumes increase or decrease. This is because they are not directly involved in the manufacturing or delivery of a product or service.
- As a result, fixed costs are categorized as indirect costs. Fixed costs are costs that are not affected by volume. Fixed costs are costs that are based on time rather than the amount produced or sold by your company.
- Rent and lease costs, salaries, utility bills, insurance, and loan repayments are all examples of fixed costs. Variable costs vary according to the amount of output produced.
- Labor, commissions, and raw materials are examples of variable costs. Regardless of production output, fixed costs remain constant. Lease and rental payments, insurance, and interest payments are examples of fixed costs.
- Total production costs — (variable cost per unit * number of units produced) = Fixed costs
To learn more about fixed cost refer to
https://brainly.com/question/25534066
#SPJ4
