Asked by Cameron Brown on Jun 25, 2024
Verified
Fixed costs are equal to zero when production is zero.
Fixed Costs
These are business expenses that do not vary with the level of goods or services produced, such as rent, salaries, and insurance.
- Study the influence of fixed and variable expenses on the assessment of break-even points.
Verified Answer
CB
Caca_ bjtwebtsJun 28, 2024
Final Answer :
False
Explanation :
Fixed costs are costs that do not change with the level of production, meaning they must be paid even if production is zero. Examples include rent, insurance, and salaries of permanent staff.
Learning Objectives
- Study the influence of fixed and variable expenses on the assessment of break-even points.