Asked by
Allison Tapaya
on Nov 19, 2024
Verified
A fixed cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases.
Fixed Cost
A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
Per Unit Basis
A method of expressing costs, pricing, or other financial measures on a per single unit of product or service basis.
- Examine the relationship between variable and fixed costs and how alterations in activity levels influence these financial expenditures.
Verified Answer
AL
Learning Objectives
- Examine the relationship between variable and fixed costs and how alterations in activity levels influence these financial expenditures.