Which of the Following Statements Concerning Ease of Adjustment Codes

question 10

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 organization-sustaining costs are not assigned codes.

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