Fixed costs do not respond to:
A) Capital expenditures made by the company
B) Short-term changes in the amount of activity
C) Changes in committed expenditures
D) Discretionary investments in the company

Question

Quizplus · Accepted Answer

Over the short term, fixed costs are indifferent to activity level changes. For example the cost of property taxes on a building would not change based on activity volume differences.

Fixed Costs Do Not Respond To