How Are Fixed Costs Best Defined

question 35

Multiple Choice

How are fixed costs best defined?

• A)as fixed in relation to changes in activity over the relevant range of output.
• B)as fixed for all time.
• C)as fixed for 6 months.
• D)as fixed for a given number of products.

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Definitions:

Merchandiser

A business or person engaged in the selling of goods to consumers, typically in the retail industry.

Products in Process

Items undergoing production but not yet complete, a rephrased term for work in process inventory.

Raw Materials Inventory

Stocks of the basic materials that are used in manufacturing processes to create finished goods, included as part of a company's inventory.