Fixed costs:
A)may be either direct or indirect costs.
B)vary with production or sales volume.
C)include parts and materials used to manufacture a product.
D)can be adjusted in the short run to meet actual demands.

Question

Quizplus · Accepted Answer

Fixed costs do not vary with production or sales volume, do not include parts and materials used in manufacturing (those are variable costs), and typically cannot be adjusted in the short run to meet actual demands. They may, however, be either direct or indirect costs depending on their relationship to a specific cost object.

Fixed Costs