Which of the following best describes the purpose of fixed manufacturing costs?
Which of the following best describes the purpose of fixed manufacturing costs?
Fixed manufacturing costs are incurred to ensure that certain expenses remain constant regardless of the production volume. These costs include items like rent, salaries, and machinery maintenance, which do not fluctuate with the level of production. The purpose is to have stable costs despite the operating capacity.
The purpose of fixed manufacturing costs is to incur stable costs despite operating capacity. This means that these costs remain constant regardless of the level of production. Fixed manufacturing costs include expenses such as rent for production facilities, machinery maintenance, and salaries for production staff.
C is the right answer here. Any thoughts?
C is not "the purpose" of fixed manufacturing costs,A is correct.