An accountant may have difficulty classifying costs as fixed or variable because _____.
A)costs may behave in a nonlinear way
B)costs may be affected by more than one cost driver
C)the decision situation may cause the costs to be fixed in the short term
D)all of these answers are correct

Question

Quizplus · Accepted Answer

All of these answers are correct. Costs may behave in a nonlinear way, be affected by more than one cost driver, or be fixed in the short term due to the decision situation. As a result, it can be difficult for an accountant to definitively classify costs as fixed or variable.

An Accountant May Have Difficulty Classifying Costs as Fixed or Variable