Accounting Multiple Choice Question – 15 February 2022

Which of the following best describes a fixed cost?

Select ONE answer:

1. A cost which has a direct relationship with output
2. A fixed proportion of total costs
3. A cost which remains constant irrespective of output
4. A cost which decreases proportionately with output

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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