Fixed costs per unit remain constant over a given range of production output.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Production Output

The quantity of goods and services produced by a company or sector over a specified period.

Delve into the effects of fixed and variable costs on break-even point analysis.
Examine the association between output volume and unchanging costs.

Verified Answer

Final Answer :

False

Explanation :

Fixed costs per unit decrease as production output increases because the total fixed costs are spread over more units.

Learning Objectives

Delve into the effects of fixed and variable costs on break-even point analysis.
Examine the association between output volume and unchanging costs.