Multiple choice

Directions: Choose the correct option and complete the sentence.

Fixed cost and _______ costs are the same.

  1. variable

  2. marginal

  3. incremental

  4. time

  5. period
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Fixed costs are often referred to as period costs because they are incurred based on the passage of time rather than the level of production activity. They remain constant regardless of output volume within a relevant range.

Keep practicing — related questions