In cost accounting, costs that remain constant in total amount over a relevant range of activity are known as:
ASemi-Variable Costs
BFixed Costs
CSunk Costs
DVariable Costs
Explanation
* Fixed Costs remain constant in total across the relevant range, but fixed cost per unit decreases as volume increases.
* Examples include rent, executive salaries, insurance, and linear equipment depreciation.
* Variable costs, in contrast, change in direct proportion to activity levels.
Exam Relevance
- Topic: Cost Accounting
- Subtopic: Cost Behavior

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