Asked by Kolton Alvey on May 19, 2024
Verified
Costs that remain constant in total dollar amount as the level of activity changes are called
A) fixed costs
B) mixed costs
C) product costs
D) variable costs
Fixed Costs
Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.
Activity Changes
Adjustments or variations in the level of a company's activities, such as production volume or sales, that can impact its costs and operational efficiency.
- Identify and gain an understanding of the various kinds of costs, including variable, fixed, and mixed.
Verified Answer
MW
Morissa WilsonMay 22, 2024
Final Answer :
A
Explanation :
Fixed costs remain constant in total dollar amount regardless of the level of activity.
Learning Objectives
- Identify and gain an understanding of the various kinds of costs, including variable, fixed, and mixed.