MENU
What is the name given to costs which do not vary as activity levels in a business increase or de-crease?
Suggested Answer: C
Get Premium L3M3 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
Political.
It's a close-run thing with economic, but the reference to 'stability of governing regimes' clinches if for 'political'.
34 comments · newest first
LE
Leota
11 months ago
Really? I always mix those up.
LA
Latia
12 months ago
Nope, fixed costs are the right answer!
AL
Albina
12 months ago
Wait, are you sure? I thought it was variable costs.
VI
Vilma
1 year ago
Agreed, fixed costs don’t change with activity levels.
DE
Devorah
1 year ago
It's definitely fixed costs!
CO
Colette
1 year ago
This question reminds me of a practice test where we discussed how fixed costs remain constant. I’m pretty confident it’s fixed costs.
LY
Lynelle
1 year ago
I’m a bit confused. I thought indirect costs were also fixed, but now I’m leaning towards option D.
BU
Bulah
1 year ago
I remember studying variable costs, but they fluctuate with activity. Fixed costs seem to fit better for this question.
DU
Dustin
1 year ago
I think the answer might be fixed costs, but I’m not entirely sure. It’s the one that doesn’t change with production levels, right?
OM
Omer
1 year ago
The key here is that the costs don't vary with changes in activity levels. That points to fixed costs as the answer. I feel pretty confident about this one.
JO
Joni
1 year ago
I'm a bit confused on the wording of the question. Can someone clarify what they mean by "activity levels" in a business? I want to make sure I'm interpreting that correctly.
MI
Mindy
1 year ago
Fixed costs, got it. This is a classic cost accounting question that we've covered a lot in class.
GE
Geraldine
1 year ago
Hmm, I'm a little unsure about this one. I know the difference between fixed and variable costs, but I want to double-check my understanding before answering.
GE
Genevive
1 year ago
This one seems pretty straightforward. I'm pretty sure the answer is fixed costs.
LA
Launa
2 years ago
D) Fixed costs is the way to go. I'm not going to let these tricky accounting terms trip me up. Bring on the next question!
WI
Wilson
1 year ago
Yes, fixed costs are like rent or salaries that stay the same no matter how much we produce.
KR
Krissy
1 year ago
I agree, fixed costs are costs that remain constant regardless of activity levels.
ST
Stefanie
1 year ago
Fixed costs is the way to go. I'm not going to let these tricky accounting terms trip me up. Bring on the next question!
AH
Ahmad
2 years ago
Haha, I bet the person who wrote this question is a real comedian. They must have been thinking, 'Let's see if they can figure out the difference between fixed and variable costs!' Well, I'm ready for the punchline - D) Fixed costs.
TA
Taryn
1 year ago
Good job!
JE
Jesus
1 year ago
I knew that one!
GE
Gearldine
1 year ago
That's correct!
MA
Markus
1 year ago
Fixed costs
LO
Long
2 years ago
But what about indirect costs? They also do not vary with activity levels.
MA
Marsha
2 years ago
Hmm, I was torn between B) Indirect costs and D) Fixed costs, but I think D) is the correct answer. Fixed costs, like rent and insurance, stay the same regardless of how much you produce.
HY
Hyun
1 year ago
Yes, fixed costs are expenses that do not change with the level of production.
VA
Val
2 years ago
I agree, fixed costs are the ones that stay the same no matter what.
WE
Wenona
2 years ago
I agree with Delisa, fixed costs do not vary with activity levels.
JU
Justa
2 years ago
The answer is clearly D) Fixed costs. These are the costs that don't change with the level of production or sales.
OM
Omer
1 year ago
Exactly, they stay the same whether you produce a lot or a little.
RA
Raul
2 years ago
So, fixed costs are like rent and salaries, right?
RA
Rasheeda
2 years ago
I agree, fixed costs remain constant regardless of activity levels.
AN
Antonette
2 years ago
I think the answer is D) Fixed costs.
DE
Delisa
2 years ago
D) Fixed costs