Total fixed costs change in proportion to changes in volume of activity.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period.

Volume Of Activity

A measure of the total amount of work performed or output produced in a specific period.

Differentiate between fixed, variable, and mixed costs in relation to production volume.

Verified Answer

Final Answer :

False

Explanation :

Total fixed costs remain constant regardless of the volume of activity.

Learning Objectives

Differentiate between fixed, variable, and mixed costs in relation to production volume.