Common fixed costs:
A)Are also referred to as facility-level costs.
B)Do not relate to any product in particular but to the entire business.
C)Are not controllable at the product level.
D)Both a and b.
E)a, b, and c.

Question

Quizplus · Accepted Answer

Common fixed costs are facility-level costs that are incurred for the entire business and cannot be directly attributed to any specific product or service. They are not controllable at the product level since they are necessary for the overall functioning of the business. Therefore, both choices A and B are correct, and choice C is also correct. Hence, the correct answer is E.

Common Fixed Costs