Which of the Following Statements Concerning Ease of Adjustment Codes

Multiple Choice

Which of the following statements concerning ease of adjustment codes is incorrect?

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.