Question: Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of
Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements isare correct?
I.
As the cost driver level increases, total fixed cost remains unchanged.
II
As the cost driver level increases, unit fixed cost increases.
III.
As the cost driver level decreases, unit variable cost decreases.
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