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Part $1$

$"$There is no such thing as a fixed cost. All costs can be$\text{'}$unfixed$\text{'}$ given sufficient$$time$."$ Do you$$agree$?$ What is the implication of your answer for CVP$$analysis$?$

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Part $1$

A$.$

Once an item is classified as either fixed or$$variable$,$ it cannot be changed. The classification of items as either fixed or variable has no impact on CVP$$analysis; therefore, the decision is irrelevent anyway.

B$.$

Once an item is classified as either fixed or$$variable$,$ it cannot be changed. CVP analysis depends upon these classifications remaining the$$same; therefore, any change would cause the analysis to lose its usefulness.

C$.$

Items classified as fixed in the short run may become variable with a longer time horizon$($period of time for a$$decision$).$ CVP analysis depends upon these classifications remaining the$$same$,$ though.$$Therefore$,$ any change would cause the analysis to lose its usefulness.

D$.$

Many items classified as a fixed in the short run may become variable costs with a longer time horizon$($period of time for a$$decision$).$ CVP is not made any less relevant when the time horizon lengthens.