Fixed cost is a cost:
A. Which changes in total in proportion to changes in output
B. which is partly fixed and partly variable in relation to output
C. Which do not change in total during a given period despite changes in output
D. which remains same for each unit of output
Answer: Option C
Solution (By Examveda Team)
Fixed cost is a cost which do not change in total during a given period despite changes in output. 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.
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