Fixed costs have no cost driver in the short run,but may have a cost driver in the long run.

Question

Quizplus · Accepted Answer

Fixed costs are costs that do not vary with the level of production or output. In the short run, fixed costs remain constant regardless of changes in production levels, and therefore have no cost driver. However, in the long run, fixed costs may have a cost driver as they may be influenced by changes in the scale of production or changes in technology.

Fixed Costs Have No Cost Driver in the Short Run,but