A fixed cost is a cost which Select one: a. varies in total with changes in the level of activity b. remains constant per unit with changes in the level of activity c. varies inversely in total with changes in the level of activity d. remains constant in total with changes in the level of activity

D. Remains constant in total with changes in the level of activity.

Explanation:

Costs costs that are constant irrespective of the quantity of goods and services produced is called fixed costs. In economics they are called indirect or overhead costs. Insurance premiums, loans are also fixed costs. All costs are variable in economics.  Some costs change with the change in output. Fixed costs affect the per unit profit margins of a company as a company having less amount of fixed cost would have more profit margin than the one with large amount of fixed costs.