While it is relatively easy to determine variable costs as they are linked to the units produced, fixed costs are more difficult to determine as
A) much of the information is confidential and not readily available to the marketer.
B) there are no formulas to work with.
C) they must cover all the expenses of the firm and it may be difficult to get accurate estimates.
D) depreciation on fixed assets can vary with accounting practices.

Question

Quizplus · Accepted Answer

Fixed costs are challenging to determine because they must cover all the firm's expenses, and obtaining accurate estimates can be difficult due to the complexity and variability of these costs.

While It Is Relatively Easy to Determine Variable Costs as They