An increase in fixed costs usually indicates:
A) relevant range is decreasing
B) cost driver activity is decreasing
C) relevant range is increasing
D) cost driver activity is increasing

Question

Quizplus · Accepted Answer

An increase in fixed costs usually indicates that the relevant range is increasing, as fixed costs are often associated with capacity or scale, which can expand the range of activity levels over which the fixed costs remain constant.

An Increase in Fixed Costs Usually Indicates