Q420
Component of total cost, which never changes with change in level of production is classified as
A.
fixed cost
AnswerB.
constant
C.
variable
D.
both a and b
Answer: Option A
Solution
Answer: Option A
Solution:
Component of total cost, which never changes with change in level of production is classified as fixed cost. A fixed cost is an expense that does not change as production volume increases or decreases within a relevant range.