Which of the statements is correct?

Question

Quizplus · Accepted Answer

All the statements provided reflect accurate aspects of cost behavior in different contexts. A) In the short term, direct labor costs can behave like fixed costs because the number of workers might not change immediately with production levels. B) Over the long run, what are initially fixed costs can become variable as they adjust to changes in the scale of operations. C) Increasing production beyond current capacity often necessitates investments in additional fixed assets, thereby increasing fixed costs.

Which of the Statements Is Correct