Fixed costs can be defined as costs that A. are incurred only when production is large enough. B. vary inversely with production. C. are incurred even if nothing is produced. D. vary in proportion with production.

Question

Corbin Reeves

Business

15 November, 09:03

Fixed costs can be defined as costs that A. are incurred only when production is large enough. B. vary inversely with production. C. are incurred even if nothing is produced. D. vary in proportion with production.

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Answers (1)

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Clements · Answer 1

The correct answer is C. are incurred even if nothing is produced.

Explanation:

Fixed costs are the cost of an organization that don't change with the amount of production. So, if the production is 0, this cost will exist anyway. For example: taxes, rental

Then, Fixed costs can be defined as costs that are incurred even if nothing is produced.