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A fixed cost is one that does not vary with

  • A.the volume of output
  • B.the passage of time
  • C.the price charged for the product
  • D.the number of products in the range

Answer: A

Rent, insurance, depreciation and salaried staff continue whether the plant runs flat out or stands idle. They are fixed with respect to volume, not with respect to time, and most of them do change over a long enough period.

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