Exam CSCP topic 1 question 83 discussion

why not option A. APICS dictionary describes fixed cost as 'An expenditure that does not vary with the production volume; for example, rent, property tax, and salaries of certain personnel.'

Answer is 'A'

A is correct

Fixed costs remain steadfast, regardless of the volume of operations. In logistics, they encompass expenses like warehouse rent, equipment maintenance, insurance, and administrative salaries. Taming these costs is pivotal, ensuring financial stability during highs and lows

Fixed costs are expenses that remain the same regardless of how much a business produces or sells. This means they do not fluctuate with changes in activity levels.

Fixed costs are costs that remain constant and do not vary with the level of production or output. They are incurred regardless of the quantity of goods or services produced. Examples of fixed costs include rent, salaries of permanent staff, insurance premiums, and depreciation of fixed assets. Option A correctly describes fixed costs as being independent of the volume of output.

A Is correct

Answer is A

fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities. This means fixed costs are generally indirect, in that they don't apply to a company's production of any goods or services. hence D

The answer is “A”, fixed costs remain regardless of volume.