Cost which remains unchanged, in proportion to level total volume of production is classified as

A total cost
B infeasible cost
C fixed cost
D variable cost

Correct Answer: fixed cost

Cost which remains unchanged, in proportion to level total volume of production is classified as fixed cost. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.
Bissoy MCQ
#Commerce #Costing

Related Questions

If all the factors of productions are increased in a fixed proportion , volume of production increase proportion which is greater than the proportion of increase in the factors of production -this state can be described most appropriately by -
A Proportionate return to scale
B Disproportionate return of scale
C Increasing return to scale
D Law of scale
It all the factors of productions are increased in a fixed proportion, volume of production increase proportion which is greater than the proportion of increase in the factors of production this state can be described most appropriately by-
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B Disproportionate return of scale
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