The kind of cost which does not vary with the level of production of company or level of sales is classified as?
Correct answer: B. fixed costs
- A. variable costs
- B. fixed costs
- C. total costs
- D. all of above
Explanation
Fixed costs remain unchanged in the relevant production range, even when output or sales vary, as with rent or salaried administrative expenses. Variable costs, in contrast, change with the level of activity.
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