Attributable fixed cost
An attributable fixed cost relates specifically to a product, segment or activity rather than being a share of common cost. Traceability does not by itself prove avoidability: a specific contract may continue after the activity stops. For reporting, distinguish attributable fixed costs from allocated common costs; for decisions, investigate what can actually change and when. The direct or indirect label also depends on the cost object being measured.
Worked example
A dedicated production-line supervisor costs $30,000. The cost is attributable to that line, but a closure decision must check whether the post and payment can be removed.
Common mistake
Do not replace the avoidability test with a direct-cost label or assume every attributable cost disappears immediately.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |