Question

Costs that remain constant (stay the same) in total dollar amount as the units sold increases are called

A. variable costs
B. product costs
C. mixed costs
D. fixed costs
A Moving to the next question prevents changes to this answer.

Answer 1

Answer: D. Fixed costs

Rent is an example of fixed costs. The amount of rent does not change based on how many items are produced. This is assuming you are not changing the size of the location or expanding to another location.