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Sagot :
The correct answer is Fixed costs B. decrease as production decreases. therefore the correct option is (B) option.
Rent and leasing charges, salary, energy prices, insurance, and loan repayments are a few examples of fixed costs. There are certain taxes that are fixed costs as well, such as company licenses. Fixed costs are expenses that remain constant regardless of whether sales or production volumes rise or fall. This is so because they are not involved in the actual process of producing a something or providing a service.However, if the workforce grows or shrinks, so may the wages given to employees. As a result, it is not regarded as a fixed expense.Both variable and fixed expenses are incurred by businesses during the production process. The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable expenses. Regardless of the level of production, fixed expenses stay constant.
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