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How are fixed costs different from variable costs?

A.) Fixed costs are the same for all businesses; variable costs apply to individual businesses alone.
B.) Fixed costs only exist in command economies; variable costs only exist in market economies.
C.) Fixed costs are costs associated with capital, such as machinery; variable costs are the cost of labor.
D.) Fixed costs do not change no matter how much a business produces; variable costs do change.

Respuesta :

Answer:

D.) Fixed costs do not change no matter how much a business produces; variable costs do change.

Step-by-step explanation:

A variable cost varies with the amount produced, while a fixed cost remains the same no matter how much output a company produces.

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