Which of the following statements is correct regarding the management of costs for businesses when activity levels may change rapidly?
A) Fixed costs are more manageable than variable costs.
B) Both fixed costs and variable costs are easily managed.
C) Variable costs are more manageable than fixed costs.
D) Both variable costs and fixed costs are difficult to manage.

Question

Quizplus · Accepted Answer

Variable costs are more manageable than fixed costs because they fluctuate with activity levels, allowing businesses to adjust them more easily in response to changes in demand.

Which of the Following Statements Is Correct Regarding the Management