Question

Haverton is studying whether to drop a product because of ongoing losses. Costs that would be relevant in this situation would include variable manufacturing costs as well as:A. factory depreciation.B. avoidable fixed costs.C. unavoidable fixed costs.D. allocated corporate administrative costs.E. general corporate advertising

Answer 1

The correct answer is letter "B": avoidable fixed costs.

Step-by-step explanation:

Avoidable fixed costs are expenditures that can be set aside to modify the form of a given product project is being handled. Usually, manufacturers with too many produced products can stop one of their lines which implies taking away inherent expenses such as labor and raw materials.