Asked by
AbbySue Campbell
on Nov 13, 2024
Verified
A fixed cost remains constant in total and on a per unit basis at various levels of activity.
Fixed Cost
Costs that do not change with the level of manufacturing activity or output, such as rent, salaries, and insurance premiums.
Constant In Total
A term that refers to a cost or expense that remains unchanged in total, regardless of changes in the related level of activity or volume.
- Acquire knowledge about the relationship between activity rates and variable as well as fixed expenditures.
Verified Answer
AR
Learning Objectives
- Acquire knowledge about the relationship between activity rates and variable as well as fixed expenditures.