The chances of cost to be considered as variable are more, if the __________?

Correct answer: A. time horizons are long

  • A. time horizons are long
  • B. time horizons are short
  • C. time horizons are irrelevant
  • D. time horizons are relevant

Explanation

Over a longer time horizon, more costs can be adjusted and therefore are likely to behave as variable costs. In the short run, many costs remain fixed because resources cannot be changed immediately.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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