Fixed costs that continue to exist even after a product line is discontinued are called
A)unavoidable fixed costs.
B)avoidable fixed costs.
C)variable fixed costs.
D)relevant fixed costs.

Question

Quizplus · Accepted Answer

Unavoidable fixed costs are costs that continue to exist even after a product line is discontinued, such as rent on a facility or salaries of employees who are not directly involved in producing the product line. These costs cannot be avoided or eliminated by discontinuing the product line.

Fixed Costs That Continue to Exist Even After a Product