Which of the following statements is true when referring to fixed costs?

A. Fixed costs increase in total throughout the relevant range.
B. As volume increases, unit fixed cost and total fixed cost will change.
C. Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.
D. Committed fixed costs arise from the annual decisions by management.


Answer: C

Business

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