Question

Only costs that would disappear over time if a segment disappeared should be treated as (1) fixed costs. (Enter only one word per blank.)

Answer 1

Fixed costs are expenditures that do not change regardless of the level of production. They include costs such as rent on a factory or retail space, machinery or equipment, research and development, and advertising.

Step-by-step explanation:

Fixed costs are expenditures that do not change regardless of the level of production. They include costs such as rent on a factory or retail space, machinery or equipment, research and development, and advertising. These costs remain the same even if a segment disappears.