Variable costs are always relevant and fixed costs are alway

“Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree or disagree? Why?
Answer in ur own words, ty
“Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree or disagree? Why?
Answer in ur own words, ty
Answer in ur own words, ty

Solution

I totally disagree with the aforementioned statement.

Variable costs are those which vary directly with the quantity produced of the comodity.

Whereas, Fixed costs are those which remain constant (fixed) at all levels of production.

In producing a product, both the cost i.e Fixed Cost and Variable cost are relevant for calculating the total cost of the product.

So, neither of them can be called relevant or irrelevant.

 “Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree or disagree? Why? Answer in ur own words, ty “Variable costs are alwa

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