Question

Costs that remain the same even when occupancy fluctuates. Examples: mortgage or rent payments, property taxes, insurance.

a) Variable Costs
b) Operating Expenses
c) Fixed Costs
d) Sunk Costs

Answer 1

Fixed costs are costs that remain the same regardless of the level of production. Examples include rent, mortgage or property taxes, and insurance.

Step-by-step explanation:

Fixed costs are costs that remain the same even when occupancy fluctuates. Examples of fixed costs include mortgage or rent payments, property taxes, and insurance. These costs do not change regardless of the level of production. For instance, once you sign a lease, the rent remains the same regardless of the amount produced until the lease expires.