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A- fixed in long term B- variable in long term C- variable in short term D- mixed cost
A - Fixed in long term, actually it does not matter if its a long term or short term, fixed cost is a fixed amount that will incur irrespective of its tenure/period.
A cost that does not vary depending on production. So the answer is A - Fixed in long term. Eg: Rent
B.
Variable Cost in long term
Answer option : >>>>>>>>>>>>>>>>>>> B- variable in long term.
In management accounting, fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales. In marketing, it is necessary to know how costs divide between variable and fixed.
a fixed is a long term fixed cost
Fixed cost is A- fixed in long term
that cost wich never chance according to volume of activity
Variable costs are costs that vary with the volume of production is directly proportional to the volume of production
total cost = fixed cost + variable cost
(B) is the Correct Ans.
Variable in Long Term.
A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses that have to be paid by a company, independent of any business activity. It is one of the two components of the total cost of a good or service, along with variable cost.
