When products are left unsold, what impact does this NOT have on the company? Select One A.Increases variable costs B.Increases stock-out costs C.Decreases plant utilization D.Both B and C
The impact that leaving products unsold does NOT have on the company is:
A. Increases variable costs
Leaving products unsold typically does not directly increase variable costs. Variable costs are costs that vary in direct proportion to the quantity of goods produced, and they are incurred in the production process. Unsold products may lead to other costs, such as stock-out costs or a decrease in plant utilization, but it does not directly impact variable costs. Variable costs are more related to the production process and not specifically tied to whether the products are sold or unsold.
