A fixed cost: Does not change with changes in the volume of activity within the relevant range. Requires the future outlay of cash and is relevant for future decision making. Is irrelevant for managers' decision making. Is directly traceable to a cost object. Changes with changes in the volume of activity within the relevant range.

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Business

Mckinley Mcgee

26 January, 04:36

A fixed cost: Does not change with changes in the volume of activity within the relevant range. Requires the future outlay of cash and is relevant for future decision making. Is irrelevant for managers' decision making. Is directly traceable to a cost object. Changes with changes in the volume of activity within the relevant range.

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Brynlee Jennings · Answer 1

Answer: Does not change with changes in the volume of activity within the relevant range.

Explanation:

A fixed cost is a type of cost that does not change with the increase or the reduction in the amount of the goods or services that are produced or sold. They are the expenses that a company will pay independent of any particular business activities.

Fixed costs are doesn't depend on level of goods or services that are produced by a business. Examples of fixed costs are insurance premiums, rent or loan payments.