Fixed costs will often be irrelevant for short-term decision making because they:Do not vary on a per-unit-of-output basis.O Are the same each time period.Typically do not differ in total between decision alternatives being considered.O Are not committed.Cannot be estimated with precision.

Lets understand the basics.Costs are mainly divided into,(1) Fixed costs(3) Variable costsVariable…

Fixed costs will often be irrelevant for short-term decision making because they: O Do not vary on a per-unit-of-output basis. O Are the same each time period. O Typically do not differ in total between decision alternatives being considered. O Are not committed. Cannot be estimated with precision.

Fixed costs will often be irrelevant for short-term decision making because they: O Do not vary on a per-unit-of-output basis. O Are the same each time period. O Typically do not differ in total between decision alternatives being considered. O Are not committed. Cannot be estimated with precision.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Fixed costs will often be irrelevant for short-term decision making because they:
Do not vary on a per-unit-of-output basis.
O Are the same each time period.
Typically do not differ in total between decision alternatives being considered.
O Are not committed.
Cannot be estimated with precision.

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