Which Type of Cost Does Not Depend on a Firm's

question 286

Multiple Choice

Which type of cost does not depend on a firm's output?

• A) fixed cost
• B) variable cost
• C) total cost
• D) marginal cost

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Definitions:

Actual Costs

The true costs incurred for materials, labor, and overhead in the production of goods or services, as opposed to estimated or standard costs.

Budgeted Costs

Projected financial figures related to the expenses expected to be incurred over a budget period.

User Departments

Departments within an organization that utilize services or resources provided by other parts of the organization.

Support Department

A unit within an organization that provides essential services or support to the primary operations or production departments, not directly generating revenue.