
Which of the following best describes a fixed cost?
Select ONE answer:
- A cost which has a direct relationship with output
- A fixed proportion of total costs
- A cost which remains constant irrespective of output
- A cost which decreases proportionately with output
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct
- Not correct
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