A Fixed Cost

question 67

Multiple Choice

A fixed cost:

• A) Requires the future outlay of cash and is relevant for future decision making.
• B) Does not change with changes in the volume of activity within the relevant range.
• C) Is directly traceable to a cost object.
• D) Changes with changes in the volume of activity within the relevant range.
• E) Has already been incurred and cannot be avoided so it is irrelevant for decision making.

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Definitions:

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