What type of cost remains constant in total regardless of changes in the level o

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Question: What type of cost remains constant in total regardless of changes in the level of activity within a relevant range?

Options:

Correct Answer: Fixed Cost

Solution:

Fixed costs do not change with the level of production or sales within a relevant range.

What type of cost remains constant in total regardless of changes in the level of activity within a relevant range?

What type of cost remains constant in total regardless of changes in the level of activity within a relevant range?

Step 1: Understand what costs are. Costs are expenses that a business incurs to operate.
Step 2: Learn about fixed costs. Fixed costs are expenses that do not change regardless of how much a business produces or sells.
Step 3: Identify the relevant range. The relevant range is the level of activity (like production or sales) where fixed costs remain constant.
Step 4: Recognize that within this relevant range, fixed costs stay the same even if production increases or decreases.

No concepts available.