Fixed costs that will continue to exist if a product is dropped are irrelevant.

Name: Fixed costs that will continue to exist if a product is dropped are irrelevant.
Brand: Quizplus
Rating: 4.7 (55 reviews)

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of production or sales. If a product is dropped, these costs will still need to be paid and therefore have no impact on the decision to drop the product or not. As a result, they are considered irrelevant for decision-making purposes.

Fixed Costs That Will Continue to Exist If a Product