Question

Fixed costs can be defined as costs thatGroup of answer choicesvary inversely with production.vary in proportion with production.are incurred only when production is large enough.are incurred even if nothing is produced.

Answer 1

Answer: are incurred even if nothing is produced.

Explanation:

Fixed costs are referred to as the cost that doesn't vary with the production level. Even if the company doesn't produce anything, the fixed cost will still be incurred.

The fixed cost is different from the variable cost which is the cost that varies along with production. Examples of fixed cost include salaries, rental lease payments, salaries, etc.