Question

Fixed costs can be defined as costs that:_______

a. a vary inversely with production.
b. vary in proportion with production.
c. are incurred only when production is large enough.
d. are incurred even if nothing is produced.

Answer 1

Answer:

d. are incurred even if nothing is produced.

Explanation:

The fixed cost is the cost which remains the same in the case when the production level is increased or decreased or same

Also if nothing is produced still the fixed cost is incurred

Like: rent, depreciation etc

This would remain the fixed . And also cannot be avoided

Therefore the correct option is d.

And other options are wrong