Fixed Costs Will Often Be Irrelevant for Short-Term Decision Making

question 26

Multiple Choice

Fixed costs will often be irrelevant for short-term decision making because they:

• A) Do not vary on a per-unit-of-output basis.
• B) Are the same each time period.
• C) Typically do not differ in total between decision alternatives being considered.
• D) Are not committed.
• E) Cannot be estimated with precision.

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