(Appendix 5A)Which of the Following Statements Concerning Ease of Adjustment

Multiple Choice

(Appendix 5A) Which of the following statements concerning ease of adjustment codes is NOT correct?

A) "Green" costs adjust automatically to changes in activity.
B) "Yellow" costs could be adjusted to changes in activity,but such adjustments require management action; the adjustment is not automatic.
C) "Red" costs cannot be adjusted to changes in activity.
D) The costs of idle capacity and organization-sustaining costs are not assigned codes.