Which of the Following Statements Is True When Referring to Fixed

question 150

Multiple Choice

Which of the following statements is true when referring to fixed costs?

• A) Committed fixed costs arise from the annual decisions by management.
• B) As volume increases, unit fixed cost and total fixed cost will change.
• C) Fixed costs increase in total throughout the relevant range.
• D) Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.