Question: Expense # 1 is a fixed cost; expense # 2 is a variable cost. During the current year, the activity level has increased, but is
Expense # is a fixed cost; expense # is a variable cost. During the current year, the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that:
expense # will be unchanged.
expense # will decrease.
expense # will decrease.
expense # will increase.
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