Question

Fixed costs can be defined as costs that A. vary inversely with production. B. vary in proportion with production. C. are incurred only when production is large enough.

Answer 1

Answer:

D. are incurred even if nothing is produced.

Explanation:

There are primarily two types of costs, i.e. the variable cost and the fixed cost. The variable cost is the cost that varies when the level of production changes, while the fixed cost is the cost that remains unchanged whether the level of production changes or not

So, by the above explanation, we can conclude that the fixed cost can be incurred if there is nothing to be produced.