Because facility costs are fixed and do not change with volume changes, these cost are never relevant in considering alternatives.

Name: Because facility costs are fixed and do not change with volume changes, these cost are never relevant in considering alternatives.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Facility costs, while generally fixed, can become relevant in decision-making if the alternatives under consideration would alter the fixed cost structure, such as expanding, downsizing, or closing facilities.

Because Facility Costs Are Fixed and Do Not Change with Volume