Question

The choices for each question are fixed, variable, or sunk. Complete the following statements with the correct type of costs. Costs associated with fixed inputs that do not change when output changes are__________ costs. Costs associated with variable inputs that do change when output changes are________ costs. Costs that are forever lost once they have been paid are_______ Costs.

Answer 1

Please find the detailed answer as follows:

Step-by-step explanation:

A.) FIXED COSTS

fixed costs are business expenses that are not dependent on the level of goods or services produced by the business.

B.) VARIABLE COSTS

Variable costs are those costs that vary depending on a company's production volume

C.) SUNK COTS

A sunk cost is a cost that has already been incurred and thus cannot be recovered.