Costs that are fixed in the short run have no cost driver in the short run but may have a cost driver in the _______ run.
A)short
B)long
C)indefinite
D)cost driver

Question

Quizplus · Accepted Answer

Costs that are fixed in the short run do not have a cost driver in the short run because they are not affected by changes in production levels or activity. However, in the long run, fixed costs can have cost drivers as firms have the ability to adjust their fixed costs by changing the size of their operations or making other long-term investments.

Costs That Are Fixed in the Short Run Have No