A fixed cost: Multiple Choice Requires the future outlay of cash and is relevant for future decision making. Does not change with changes in the volume of activity within the relevant range. Is directly traceable to a cost object. Changes with changes in the volume of activity within the relevant range.

Question

Donna Chavez

Mathematics

11 April, 10:21

A fixed cost: Multiple Choice Requires the future outlay of cash and is relevant for future decision making. Does not change with changes in the volume of activity within the relevant range. Is directly traceable to a cost object. Changes with changes in the volume of activity within the relevant range.

+1

Answers (2)

Know the Answer?

Camila Richard · Answer 1

The correct answer is letter "B": Does not change with changes in the volume of activity within the relevant range.

Explanation:

In economics, fixed costs are operating costs and do not change as output rates increase or decrease. It is one of two different kinds of business expenses, and the other is variable costs which vary as output rates change. Examples of fixed costs are depreciation, insurance, rent or utilities.

Bianca Ferrell · Answer 2

A fixed cost: Does not change with changes in the volume of activity within the relevant range

Step-by-step explanation:

Fixed Cost:

In economics, a fixed cost in a specified period of time does not change with respect to an increase or decrease in the production of goods or services. In contrast, the variable cost changes in proportion to changes in production of goods or services.

Examples of Fixed Cost:

Salaries, Rents, insurance payments, taxes, some utilities etc