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Fixed Cost Defined

Which of the following is correct for fixed costs. a. Fixed cost does not change with volume but varies per unit of output. b. Fixed cost changes with volume as well as per unit of output. c. Fixed cost does not change either with volume or per unit of output. d. Fixed cost varies with volume and remains fixed per unit of output.

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Question ajoutée par Utilisateur supprimé
Date de publication: 2014/08/05
Hujat Ullah Khan
par Hujat Ullah Khan , Group Financial Controller , SAED Alraeda Group

A : is the correct Answer.

Fixed cost does not change with change in volume. But fixed cost per unit of output can change as the volume change.

Ahmed Abdi Mahad
par Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Fixed cost is the cost that remains constant in total but varies in per unit. It is the total fixed cost that you must pay regardless of weather you produce some thing or not.  However, its per unit cost (fixed costs per unit) will change as the out put volume changes.

Thus, Choice A is the answer for your question

georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

a. Fixed cost does not change with volume but varies per unit of output.

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