In deciding whether to add or delete a product, service, or department, the salary of the plant manager is an _____.
A)avoidable fixed cost
B)avoidable variable cost
C)unavoidable fixed cost
D)unavoidable variable cost

Question

Quizplus · Accepted Answer

The salary of the plant manager is an unavoidable fixed cost because it is an expense that cannot be easily reduced or eliminated, regardless of whether the plant manager is responsible for the addition or deletion of a product, service, or department. It is a fixed cost because it remains constant regardless of the level of output.

In Deciding Whether to Add or Delete a Product, Service