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

Question

Quizplus · Accepted Answer

Unavoidable fixed costs are irrelevant to the decision of whether to discontinue a product line because they do not differ between alternatives. These costs will be incurred regardless of the decision, so they do not impact the analysis of discontinuing a product line.

Unavoidable Fixed Costs Are