Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the activity. Read below on fixed costs.
What are fixed costs?
Fixed costs are costs that remain the same in total dollar amount as the activity base changes. Cost per unit changes inversely to changes in the activity base. Total cost remains the same regardless of changes in the activity base.
Therefore, the answer is option A. vary with the costs of the activity.
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