Which of the Following Statements About Fixed and Variable Labor

Multiple Choice

Which of the following statements about fixed and variable labor is TRUE?

A) An unexpected increase in business volume will increase fixed labor expenses.
B) Managers have more control over fixed labor expenses than over variable labor expenses.
C) A goal of food and beverage managers should be to eliminate all fixed labor expenses.
D) Fixed labor expenses are costs associated with the minimum number of employees needed to operate a business.