A fixed cost is a cost which Aremains constant in total with
A fixed cost is a cost which
| A.remains constant in total with changes in the level of activity. |
Solution
The correct option is A.
Total fixed cost and variable cost per unit do not change with changes in levels of activity.This is the reason why fixed costs are usually ignored in decision making process.
However fixed cost per unit decreases with an increase in units of activity.
