Fixed manufacturing costs are costs that do not change with the level of production output within a relevant range. Their primary purpose is to ensure that production facilities and resources are available, regardless of the actual production volume.
C. To incur stable costs despite operating capacity
While fixed costs remain stable, this does not describe their purpose—it only describes their nature. The purpose of fixed manufacturing costs is to maintain the production environment.
The purpose of fixed manufacturing costs is to incur stable costs despite operating capacity. This means that these costs remain constant regardless of the level of production. Fixed manufacturing costs include expenses such as rent for production facilities, machinery maintenance, and salaries for production staff.
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