Unavoidable fixed costs areA. relevant to the decision of whether to discontinue the department. B. irrelevant to the decision of whether to discontinue a product line because they will not differ between alternatives. C. irrelevant to the decision of whether to discontinue a product line because they will differ between alternatives. D. none of the above.

Question

Business

Julien Barker

11 August, 17:33

Unavoidable fixed costs areA. relevant to the decision of whether to discontinue the department. B. irrelevant to the decision of whether to discontinue a product line because they will not differ between alternatives. C. irrelevant to the decision of whether to discontinue a product line because they will differ between alternatives. D. none of the above.

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Patrick Townsend · Answer 1

Irrelevant to the decision of whether to discontinue the product line because they will not differ between alternatives.

Explanation:

Fixed costs can be defined as expenses that remain constant during a particular period of time, these costs does not change with an increase or reduction in the volume of production. Fixed costs tends to remain the same even when the organisation experiences a massive sale of their products in the market. Example of fixed costs include rent, loan.

Unavoidable fixed costs can be described as the costs incurred by a company during the introduction of the product into the market. This type of cost does not have the tendency to fluctuate when the production process is discontinued.