MENU
In the analysis of costs, fixed costs are those that are:
Suggested Answer: A
Get Premium CSCP Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
Fixed costs are those expenses that remain constant regardless of the volume of output produced. These costs do not fluctuate with changes in production levels, making them independent of output volume. Examples of fixed costs include rent, salaries, and insurance. They are incurred even when production levels are zero. Fixed costs are not dependent on asset utilization, inversely proportionate to output, or constant through the useful life of the asset but are instead constant in relation to production volume.
Horngren, C. T., Datar, S. M., & Rajan, M. V. (2014). Cost Accounting: A Managerial Emphasis. Pearson.
Drury, C. (2013). Management and Cost Accounting. Cengage Learning.
30 comments · newest first
PR
Precious
7 months ago
A is clear. Fixed means no change with output.
SU
Sunshine
8 months ago
D is tricky. It can vary with asset life.
DA
Dacia
8 months ago
But what about D? They can be constant over time.
LE
Leonida
8 months ago
I agree, A makes the most sense.
AD
Adelina
8 months ago
I think it's A. Fixed costs don't change with output.
AN
Antonio
8 months ago
Fixed costs include rent and salaries, right?
EL
Elin
8 months ago
D is misleading, fixed costs can change with inflation.
MY
Myra
9 months ago
Haha, who would even think fixed costs are "inversely proportionate to the volume of output"? A) is the winner!
LA
Lacey
9 months ago
A) for sure. Fixed costs are, you know, fixed. They don't go up or down with production.
KI
Kindra
9 months ago
A) makes the most sense. Fixed costs are, well, fixed - they don't depend on output volume.
MA
Maynard
9 months ago
I agree, A) is the obvious answer. Fixed costs don't fluctuate based on how much you produce.
MI
Miriam
9 months ago
A) is definitely the right choice here. Fixed costs are independent of production levels.
BR
Brent
9 months ago
A) is the correct answer. Fixed costs do not change with the volume of output.
JA
Jacki
10 months ago
Wait, are fixed costs really constant over time? Sounds off.
FR
Francesco
10 months ago
Totally agree, fixed costs don’t change with production levels!
TR
Trinidad
10 months ago
I'm leaning towards A, but I want to double-check my understanding. Fixed costs are the overhead expenses the company has to pay no matter what, right? I'll make sure I have that right before submitting.
MO
Mozell
10 months ago
Yeah, A is the best choice. Simple logic!
MA
Marya
10 months ago
A) independent of the volume of output.
VA
Vanesa
11 months ago
I'm pretty confident A is the right answer. Fixed costs are those that don't fluctuate with output, unlike variable costs. The other options don't quite match that definition.
CL
Clemencia
11 months ago
Okay, for fixed costs, I remember they are the costs that the company has to pay regardless of how much they produce. So A seems like the best answer that captures that idea.
LA
Layla
11 months ago
Hmm, I'm a bit confused on this one. I know fixed costs are different from variable costs, but I'm not sure I fully understand the nuances of the definitions here. I'll have to think it through carefully.
MA
Malcom
11 months ago
I think the answer is A. Fixed costs don't change with output volume, so that seems like the right definition.
FR
Francisca
6 months ago
Right on! A is the best choice for fixed costs.
MO
Mona
6 months ago
A is correct. Fixed costs are stable regardless of output.
AL
Aliza
7 months ago
Definitely A! They don’t fluctuate with production levels.
TI
Tiera
7 months ago
I agree, A makes the most sense. Fixed costs stay the same.
VI
Virgilio
12 months ago
I’m a bit unsure about this one. I thought fixed costs could be dependent on asset utilization, but that might be more about variable costs?
IE
Iesha
12 months ago
I practiced a question similar to this, and I think fixed costs don’t change with output levels, which makes A sound right to me.
JO
Joesph
12 months ago
I remember something about fixed costs being constant, but I’m not sure if that means they’re constant throughout the asset's life. Maybe it’s D?
JE
Jeannetta
1 year ago
I think fixed costs are definitely independent of the volume of output, so I’m leaning towards option A.