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Management · Q323

Management Accounting

Graduate and Post Graduate · Management · question 323

Q323

Corporate sustaining costs and distribution channel costs are also classified as

A.
indirect costs
B.
variable costs
C.
fixed costs
Answer
D.
direct costs

Answer: Option C

Solution

Answer: Option C
Solution:
Corporate sustaining costs and distribution channel costs are also classified as fixed costs. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.