Asked by joshy dallas on Jul 07, 2024
Verified
Fixed costs change in the short run depending upon management's decision to accept or reject special orders.
Fixed Costs
Costs that do not change with the level of goods or services produced in the short term.
Short Run
A period in economics where at least one factor of production is fixed, limiting the firm's ability to adjust to changes in market demand.
- Acknowledge the critical nature of fixed charges in setting price points and consenting to exceptional orders.
Verified Answer
JS
Janvi SharmaJul 08, 2024
Final Answer :
False
Explanation :
Fixed costs do not change in the short run regardless of management's decision to accept or reject special orders. Fixed costs remain constant regardless of changes in production levels or activities in the short term.
Learning Objectives
- Acknowledge the critical nature of fixed charges in setting price points and consenting to exceptional orders.
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