Certified Professional Contract Manager (CPCM) 2026 – 400 Free Practice Questions to Pass the Exam

Total costs for fixed costs remain constant within the relevant range because fixed costs are expenses that do not change regardless of the level of production or sales volume. This means that whether a company produces a small or large quantity of goods, the total amount of fixed costs—such as rent, salaries, or insurance—stays the same.

In contrast, variable costs do fluctuate with production levels, so they can change as output increases or decreases. Capacity limits refer to the maximum level of output that a company can sustain, and while they may impact the ability to produce more, they do not affect total fixed costs directly. Employee wage fluctuations might occur based on various factors, but they can influence variable costs more than fixed costs unless wages are strictly fixed salaries. Thus, the total amount of fixed costs remains unchanged in total despite variations in production output.