Asked by Katia Ferreira on May 08, 2024
Verified
A cost that remains unchanged in total as the activity level (or cost driver) changes is called a:
A) fixed cost.
B) variable cost.
C) step-fixed cost.
D) step-variable cost.
Fixed Cost
Expenses that do not change with the level of production or sales activities within a certain range.
- Classify costs into different types based on their behavior, encompassing fixed, variable, semi-variable, and step costs.
Verified Answer
MR
Maria RolonMay 11, 2024
Final Answer :
A
Explanation :
A fixed cost remains constant in total regardless of changes in the activity level or cost driver.
Learning Objectives
- Classify costs into different types based on their behavior, encompassing fixed, variable, semi-variable, and step costs.
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