### Answer:
A. True

### Explanation:
The classification of costs as fixed or variable often depends on the time frame considered. In the short term, certain costs may appear to be fixed because they do not change with the level of production or activity. However, over a longer time horizon, these costs can become variable as businesses adapt, renegotiate contracts, or alter their operations. For instance, a cost like a lease payment may be fixed in the short term but can change in future negotiations. Hence, the correct answer is A, as the time frame does affect the nature of costs concerning particular activities.

Question

### Answer: 
A. True

### Explanation:
The classification of costs as fixed or variable often depends on the time frame considered. In the short term, certain costs may appear to be fixed because they do not change with the level of production or activity. However, over a longer time horizon, these costs can become variable as businesses adapt, renegotiate contracts, or alter their operations. For instance, a cost like a lease payment may be fixed in the short term but can change in future negotiations. Hence, the correct answer is A, as the time frame does affect the nature of costs concerning particular activities.

Knowee AI · Accepted Answer

### Answer: 
A. True

### Explanation:
The classification of costs as fixed or variable often depends on the time frame considered. In the short term, certain costs may appear to be fixed because they do not change with the level of production or activity. However, over a longer time horizon, these costs can become variable as businesses adapt, renegotiate contracts, or alter their operations. For instance, a cost like a lease payment may be fixed in the short term but can change in future negotiations. Hence, the correct answer is A, as the time frame does affect the nature of costs concerning particular activities.

Whether a cost is fixed or variable with respect to a particular activity is also affected by the length of time A. True B. False

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Solution

Answer:

Explanation:

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