ECONOMICS

Detailed explanation-1: -Costs that remain constant in total, but vary on a per-unit basis are classified as fixed costs.

Detailed explanation-2: -Fixed cost: A fixed cost remains constant in total amount, but changes, if expressed on a per unit basis, inversely with changes in volume. Mixed cost: A mixed cost contains both variable and fixed cost elements.

Detailed explanation-3: -A fixed cost remains constant on a per-unit basis as production changes.

Detailed explanation-4: -Variable costs: A variable cost increases or decreases as volume of activity increases or decreases. On a per unit basis, a variable cost per unit remains constant but the total amount of variable cost changes with the level of production.

Detailed explanation-5: -Fixed costs remain the same throughout a specific period. Variable costs can increase or decrease based on the output of the business. Examples of fixed costs include rent, taxes, and insurance. Examples of variable costs include credit card fees, direct labor, and commission.