Which of the following is not true ? Fixed costs remain fixed —

CS Executive · Cost and Management Accounting · PYQS · December 2014
Which of the following is not true ? Fixed costs remain fixed —
(A) Over a short period
(B) Over a long period and within relevant range
(C) Over a short period and within a relevant range
(D) Over a long period.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Over a long period and within relevant range; (D) Over a long period.. Both B and D incorrectly extend fixed-cost constancy to the long period. Fixed costs are fixed over a short period within the relevant activity range.

Topics: Cost Classification

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