Fixed Costs Depend on the ________

question 123

Multiple Choice

Fixed costs depend on the ________.

• A) amount of resources used
• B) amount of unchanged costs for a given time period
• C) volume of production
• D) total number of units sold

---

Definitions:

Sales Increase

The rise in the amount of products or services sold by a company, usually compared to a previous period.

Contribution Margin

The amount by which sales revenue exceeds variable costs, representing the contribution towards covering fixed costs and generating profit.

Direct Material Costs

The expenditures for materials that are directly involved in the manufacturing process of a product.

Fixed Costs

Operating expenses that remain constant regardless of the business activity level, such as insurance or lease payments.