Fixed Cost Is

question 410

Multiple Choice

Fixed cost is

• A)the cost of producing one more unit of capital, for example, machinery.
• B)any cost that does not change when the firm changes its output.
• C)average cost multiplied by the firm's output.
• D)usually zero in the short run.

---

Definitions:

Meals

Food that is prepared and served to individuals or groups, often at set times of day.

Patient-Visits

A measure used in healthcare management to count the number of times patients receive clinical services.

Static Budget

A budget set for a specific level of activity that does not change, even if actual levels of activity change.

Total Overhead Cost

The comprehensive sum of all indirect costs involved in operating a business, not directly tied to a specific product or service.