Fixed costs that exist even after a product is discontinued are called unavoidable fixed costs.

Name: Fixed costs that exist even after a product is discontinued are called unavoidable fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Unavoidable fixed costs are costs that cannot be eliminated even if a product is discontinued. These costs are typically associated with long-term commitments and cannot be easily reduced or eliminated. Examples of unavoidable fixed costs include rent, salaries of permanent employees, and property taxes.

Fixed Costs That Exist Even After a Product Is Discontinued