Asked by Mariam Jaser on Jun 11, 2024
Verified
Fixed costs generally remain the same regardless of the number of units produced.
Fixed Costs
Costs that do not change with the level of output or activity, such as rent or salaries.
Units Produced
The number of complete items manufactured or produced within a given timeframe.
- Discriminate between direct and indirect expenditures, along with their respective classifications.
Verified Answer
HF
Hannan FarooqJun 12, 2024
Final Answer :
True
Explanation :
Fixed costs are costs that do not vary with the level of production or sales volume, such as rent, salaries, insurance, and property taxes. Therefore, they remain constant even if the units produced or sold increase or decrease.
Learning Objectives
- Discriminate between direct and indirect expenditures, along with their respective classifications.