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

Question

Quizplus · Accepted Answer

All of these factors can contribute to the difficulty in classifying costs as fixed or variable. Costs can be fixed in the short term due to specific decision situations, influenced by multiple cost drivers, or exhibit nonlinear behavior.

An Accountant May Have Difficulty Classifying Costs as Fixed or Variable