A fixed cost is constant if expressed on a per unit basis bu

A fixed cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases. IS IT TRUE OR FALSE

Solution

false

total cost remains constant irrespective of the number of units produced

exampe: depreciation charged on the machinery it will remain same irrespective of the number of the units produced even if there is no production at all it will be constant , same it is for rent of the premises .