In budgeting for animal care, which cost category stays constant across the budget period?

In budgeting for animal care, which cost category stays constant across the budget period?

• A. Direct costs
• B. Variable costs
• C. Fixed costs
• D. Per diem rate

Answer: (C)

Stability in budgeting comes from fixed costs—expenses that don’t change with how many animals you’re caring for. These are the constant items you incur to operate during the budget period, such as permanent staff salaries, facility rent or mortgage, insurance, and depreciation on equipment. They stay the same regardless of whether the animal population goes up or down. In contrast, variable costs vary with activity, like feed, bedding, and other consumables, which increase as the number of animals grows. The per diem rate is a billing metric used to estimate daily charges rather than a cost category that inherently stays constant. So the cost category that remains constant across the budget period is fixed costs.

Stability in budgeting comes from fixed costs—expenses that don’t change with how many animals you’re caring for. These are the constant items you incur to operate during the budget period, such as permanent staff salaries, facility rent or mortgage, insurance, and depreciation on equipment. They stay the same regardless of whether the animal population goes up or down. In contrast, variable costs vary with activity, like feed, bedding, and other consumables, which increase as the number of animals grows. The per diem rate is a billing metric used to estimate daily charges rather than a cost category that inherently stays constant. So the cost category that remains constant across the budget period is fixed costs.