Total Fixed Costs Do Not Change in Response to Changes

question 238

True/False

Total fixed costs do not change in response to changes in the volume of production.

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Definitions:

Direct Labor Cost

The expense incurred by companies for wages, benefits, and other costs directly associated with the employment of workers who physically produce a product or service.

Equivalent Finished Units

A calculation in cost accounting that converts partially completed goods into a number of complete units for inventory costing purposes.

Direct Labor

The cost of wages for workers directly involved in the manufacturing or production of goods.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are considered variable costs.