Question

Within the relevant range, fixed costs ______. per unit become progressively larger as the level of activity increases remain constant in total regardless of changes in activity should not be expressed on a per unit basis when making decisions generally include rent and supervisor salaries

Answer 1

Answer:

The correct option is;

Remain constant in total regardless of changes in activity

Explanation:

In the field of Economics, fixed costs are costs that remain the same or does not undergo change when the quantity of produced goods or rendered service increases or decreases. Fixed cost are not dependent on the fluctuations in the level of produced goods and/or service.

Fixed cost are cost that are charged based on the duration of use of the facility, such as the rent paid for the factory premises.

Therefore, we have; within the relevant range, fixed costs remain constant in total regardless of changes in activity