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

Question

Quizplus · Accepted Answer

Avoidable fixed costs are costs that can be eliminated if a certain product or product line is discontinued. This is because they are specifically tied to that product line and would not continue if that line were to be discontinued.

Fixed Costs That Cease to Exist After a Product Line