Costs are defined as variable or fixed with respect to a specific activity and for a given time period.

Question

Quizplus · Accepted Answer

This statement is true. Costs can be classified as variable or fixed depending on the activity they are associated with and the time period in question. For example, direct material costs may vary based on production volume (variable cost), while rent for a factory building may remain constant regardless of production volume (fixed cost).

Costs Are Defined as Variable or Fixed with Respect to a Specific