Question

Which of the following is the correct statement about fixed costs?

A) Vary with the level of production
B) Remain constant regardless of production volume
C) Include both variable and fixed components
D) Decrease proportionally as production increases

Answer 1

Fixed costs remain constant regardless of production volume.

Step-by-step explanation:

The correct statement about fixed costs is B) Remain constant regardless of production volume. Fixed costs are costs that do not change regardless of the level of production. Examples of fixed costs include rent on a factory or retail space. Fixed costs remain the same whether you produce a great deal or a little.