Fixed assets vary directly with sales when firms are operating at less than full capacity.

Name: Fixed assets vary directly with sales when firms are operating at less than full capacity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed assets, by definition, do not vary directly with sales levels because they represent long-term investments in items like buildings, machinery, and equipment that do not change in the short term with fluctuations in sales volume.

Fixed Assets Vary Directly with Sales When Firms Are Operating