Asked by Brandon Schaffer on May 01, 2024
Verified
Fixed costs are those costs that continue even if no units are produced.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.
- Acquire knowledge on the application of fiscal appraisal mechanisms like Net Present Value for deciding on investments.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
True
Explanation :
Fixed costs are costs that do not change with a change in the number of goods or services produced or sold. Examples of fixed costs include rent, salaries, insurance, property taxes, and depreciation. These costs are incurred regardless of whether any units are produced or sold.
Learning Objectives
- Acquire knowledge on the application of fiscal appraisal mechanisms like Net Present Value for deciding on investments.