Question: 1 - 4 . Distinguish between ( a ) a variable cost, ( b ) a fixed cost, and ( c ) a mixed cost.

1-4. Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost.
1-5. What effect does an increase in the activity level have on
a. Average fixed costs per unit?
b. Variable costs per unit?
c. Total fixed costs?
d. Total variable costs?
1-8.Managers often assume a strictly linear relationship between cost and the level of activity. Under what conditions would this be a valid or invalid assumption?

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