MC 15 What is the difference between fixed and variable costs?
A. Fixed costs change with the level of production, while variable costs do not.
B. Fixed costs are easily traceable to a specific product, while variable costs are not.
C. Fixed costs are direct, while variable costs are indirect.
D. Fixed costs do not change with the level of production, while variable costs do.
Answer:D
MC 15 What is the difference between fixed and variable costs?
A. Fixed costs change with the level of production, while variable costs do not. B. Fixed costs are easily traceable to a specific product, while variable costs are not. C. Fixed costs are direct, while variable costs are indirect. D. Fixed costs do not change with the level of production, while variable costs do.
Explanation: Fixed costs are expenses that do not change with the level of production, such as rent or property taxes, while variable costs are expenses that change with the level of production, such as the cost of materials or labor.