- 1 Marks
Question
Which of the following is NOT a category in which fixed cost can be sub-divided?
A. Time period classification
B. Volume classification
C. Unit classification
D. Unavoidable classification
E. Policy classification
Answer
Answer: C. Unit classification
Explanation:
Fixed costs do not vary per unit of production; therefore, classifying fixed costs by unit is irrelevant. Categories such as time period, volume, policy, and avoidability are more relevant for fixed cost classification.
- Tags: Cost Classification, Fixed Costs
- Level: Level 1
- Topic: Cost Classifications
- Series: MAY 2022
- Uploader: Kwame Aikins