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A fixed cost is a cost that:

<p>(a) May change in total when such change is not related to changes in production</p> <p>(b) Will not change in total because it is not related to changes in production</p> <p>(c) Is constant per unit for each unit of change in production</p> <p>(d) May change in total, depending on production with the relevant range</p> <p>(e) None of these</p>

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Question added by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh
Date Posted: 2014/09/26
Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

the answer is "B" and it could be "A" since "change is not related to changes in production"

Kamran Anjum
by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Right answer is option B)

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

(b) Will not change in total because it is not related to changes in production

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

I think the right answer is option #

 

b- Will not change in total because it is not related to changes in production

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

B) will not change because it is not related to change in production..it is not change with an increase or decrease in the  goods produced or services.

ABDUL MAJEED KOOTHRADAN
by ABDUL MAJEED KOOTHRADAN , Audit Manager , TS Meera Associates Chartered Accountants

Option B. Fixed cost of production  will not change since it is  independent from volume of production.

Option A also considerable , as it may change due some other factors other than volume of production such as time, space etc

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Answer b is the correct answer

Vishnu Agrawal Vishnu
by Vishnu Agrawal Vishnu , Associate , TransSys Solutions Private Limited

fixed cost will not change in total because it is not related to changes in production / quantity but depends of period.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

ANSWER B 

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

A and B because it may change due to non production related reasons such as the increase in contracts.

Deleted user
by Deleted user

B....... is the answer

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