The fixed cost of a business:

A) vary based on the number hourly employees the company hires

B) do not vary based on how many customers the company serves

C) can be different every month based on the number of employees or customers

D) do not vary except when there is an increase in the revenues of the company

Question

Lillian Hill

Business

11 May, 11:19

The fixed cost of a business:

A) vary based on the number hourly employees the company hires

B) do not vary based on how many customers the company serves

C) can be different every month based on the number of employees or customers

D) do not vary except when there is an increase in the revenues of the company

+2

Answers (1)

Know the Answer?

Evie Schneider · Answer 1

B) do not vary based on how many customers the company serves

Explanation:

Fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales. Some examples of fixed costs include rent, insurance premiums, or loan payments. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.