Fixed cost refers to: Group of answer choices the consideration exchanged for the ownership or use of a good or service. total expenses incurred in producing or selling one additional unit of product. the total expense incurred by a firm in producing and marketing a product or service. expenses that are stable and do not change with the quantity of the product that is produced and sold. the sum of the expenses that vary directly with the quantity of the product produced and sold.

Question

Business

King Sampson

12 September, 22:20

Fixed cost refers to: Group of answer choices the consideration exchanged for the ownership or use of a good or service. total expenses incurred in producing or selling one additional unit of product. the total expense incurred by a firm in producing and marketing a product or service. expenses that are stable and do not change with the quantity of the product that is produced and sold. the sum of the expenses that vary directly with the quantity of the product produced and sold.

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Tyree Mcdaniel · Answer 1

Expenses that are stable and do not change with the quantity of products that is produced and sold

Explanation:

Fixed cost refers to cost that do not change with the level of output. They are otherwise known as overheads or indirect costs and are expenses that are not dependent on the out level of produce by the business.

In addition, fixed cost are also cost that has to be incurred by the business independent of business activities.

Examples of fixed costs are rent, cost of business, loan payments, insurance premiums, salaries etc. All these do not vary with the level or number of units produced or sold.