Asked by Vaden Mangler on Jun 13, 2024
Verified
Fixed costs are those costs that remain fixed no matter how long the time horizon is.
Fixed Costs
Business expenses that remain constant regardless of the level of production or sales.
- Comprehend how fixed and variable expenses influence cost curves in both short-term and long-term scenarios.
Verified Answer
YC
Yk Computer Studies.Jun 13, 2024
Final Answer :
False
Explanation :
Fixed costs remain constant within a relevant range of activity or over a short to medium term, but they can change over the long term due to factors like inflation, renegotiation of contracts, or changes in business scale.
Learning Objectives
- Comprehend how fixed and variable expenses influence cost curves in both short-term and long-term scenarios.