Which of the Following Statements Concerning Ease of Adjustment Codes

question 56

Multiple Choice

Which of the following statements concerning ease of adjustment codes is incorrect

• A)'Green' costs adjust automatically to changes in activity.
• B)'Yellow' costs could be adjusted to changes in activity, but such adjustments require management action; the adjustment is not automatic.
• C)'Red' costs cannot be adjusted to changes in activity.
• D)The costs of idle capacity and organisation-sustaining costs are not assigned codes.