A Fixed Cost Is Fixed Only in Relation to a Given

question 57

True/False

A fixed cost is fixed only in relation to a given wide range of total activity or volume and only for a given
time span, usually a particular budget period.

---

Definitions:

Expenses

The economic costs that a business incurs through its operations to earn revenue.

Purchase Inventory

The process by which a business buys goods and materials for use in producing its products or for resale to customers.

Advertising

Advertising is the action of calling public attention to products, services, needs, etc., through paid announcements by an identified sponsor.

Business Transaction

Any activity or event that involves the exchange of goods, services, or funds between two or more parties that affects the financial position of a business.