Understanding Fixed and Variable Costs Quiz
What is a fixed cost?
A
Cost that varies with production levels
B
Cost that doesn't change with output
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Lesson duration is: 5 minItems in this lesson
What is a fixed cost?
A
Cost that varies with production levels
B
Cost that doesn't change with output
Which of these is a variable cost?
A
Raw materials for production
B
Rent for office space
How do fixed costs behave?
A
Increase with higher production levels
B
Remain constant regardless of output
What is an example of a fixed cost?
A
Monthly rent payment
B
Utility bills that fluctuate
Variable costs change with what?
A
Time of year or season
B
Level of production or sales
