Costs That Do Not Change with Changes in Activity Levels

question 75

Multiple Choice

Costs that do not change with changes in activity levels are known as:

• A)fixed costs.
• B)variable costs.
• C)sunk costs.
• D)opportunity costs.

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Definitions:

Franchisor

A business that allows individuals or other companies to operate and sell its products or services under its brand and business model.

Franchising

A method of business expansion where a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

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