If activity is higher than expected, total fixed costs should be higher than expected.If activity is lower than expected, total fixed costs should be lower than expected.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period.

Total Fixed Costs

The cumulative amount of all expenses that do not change in total despite changes in the activity level or volume of production over a certain period.

Activity Is Higher

A state indicating increased levels of operations or actions in a given context.