Fixed costs include things like rent, power, and executive salaries that are constant regardless of production or sales volume. As a result, choice (A) is the best way to respond.
The term "fixed costs" in accounting and economics refers to corporate expenses that are independent of the volume of goods or services that a company produces. It is also used to refer to indirect costs or overhead costs. Like interest payments or monthly rent, they frequently occur again.
Most of these expenses are capital expenses. Variable costs, on the other hand, are volume-related and unknowable at the start of the accounting year. The characteristics of some variable expenses are impacted by fixed costs.
Hence, option (A) is accurate.
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