Total Fixed Costs Are ___________ Over Various Levels of Activities

question 190

Short Answer

Total fixed costs are ___________ over various levels of activities whereas total variable costs __________________ directly and ________________ with changes in the activity level.

---

Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

Gross Profit

A company's revenue minus its cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.

Net Income

A company's total earnings or profit, calculated by subtracting total expenses from total revenues.

Income Before Income Taxes

This is the earnings of a company before accounting for income taxes, representing the amount made from ordinary operations.