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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
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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