A "fixed responsiveness relationship" exists when the amount of the input varies in a straight-line relation with a cost driver.

Question

Quizplus · Accepted Answer

A "fixed responsiveness relationship" refers to a situation where the cost does not change with the level of a cost driver; it remains constant regardless of the amount of input. A straight-line relation with a cost driver indicates a variable cost behavior, not a fixed one.

A "Fixed Responsiveness Relationship" Exists When the Amount of the Input