Asked by
Priya N Yanambaka Davuluru
on Oct 12, 2024
Verified
Fixed cost is sometimes referred to as
A) sunk cost.
B) variable cost.
C) total cost.
D) economic cost.
E) accounting cost.
Fixed Cost
Costs that remain constant regardless of the amount of goods produced or sold, including rent, wages, and insurance premiums.
Sunk Cost
Costs that have already been incurred and cannot be recovered or refunded, and should not influence future business decisions.
- Acquire knowledge on the differentiation between fixed costs and variable expenditures.
Verified Answer
SB
Learning Objectives
- Acquire knowledge on the differentiation between fixed costs and variable expenditures.