A fixed cost is fixed only in relation to
Options
A) the quality of goods produced
B) the quantity of goods sold
C) a given period of time and a range of activities
D) a given period of time and the nature of activity >>>>>>>>>
The correct answer is D.
N.B
In management accounting, fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales. In marketing, it is necessary to know how costs divide between variable and fixed.
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