Asked by Svetlana Brenner on May 09, 2024
Verified
Total fixed costs change as the level of activity changes.
Total Fixed Costs
The cumulative sum of all business expenses that are consistent and do not vary with the level of output, including overheads like rent, salaries, and utilities.
Level Of Activity
The volume of output or production activity attained within a specified period, often used to measure the efficiency and capacity utilization of a business.
- Discern the differences in total and per-unit cost dynamics pertaining to variable and fixed charges.
Verified Answer
MC
MinRu ChengMay 13, 2024
Final Answer :
False
Explanation :
Total fixed costs remain constant regardless of the level of activity.
Learning Objectives
- Discern the differences in total and per-unit cost dynamics pertaining to variable and fixed charges.
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