Which cost category is least adjustable in the short term when planning a fundraiser?

• A. Variable costs
• B. Sunk costs
• C. Direct costs
• D. Fixed costs

Answer: (D)

Fixed costs are the least adjustable in the short term because they are payments that don’t change with how many tickets you sell or how much product you move for the fundraiser. These costs often come from contracts or ongoing obligations—things like space rental, equipment leases, or essential staff—that you commit to for a period, so you can’t easily alter them for a single event. Variable costs would scale with activity, and direct costs are tied to the fundraiser’s operations and can be adjusted by changing the scope. Sunk costs are past expenditures that can’t be recovered, but they’re not the focus when planning a current fundraiser since they’re not controllable anyway.