Costs That Are Incurred No Matter How Many Units of a Product

question 65

Multiple Choice

Costs that are incurred no matter how many units of a product are produced or sold are called

• A) operating expenses.
• B) overhead.
• C) variable costs.
• D) fixed costs.
• E) inflexible costs.

---

Definitions:

Future Value

The value of an investment at a specified date in the future, taking into account factors like interest rates or dividends.

Compounded Annually

The process of adding interest to the initial amount of an investment, where the interest earned each year is added to the principal.

Invested

Invested pertains to the funds that have been allocated into financial instruments, assets, or business ventures with the goal of earning a return.

Rate of Return

A positive or negative variation in an investment’s worth over a set schedule, expressed as a percentage of what the investment initially cost.