Question: If activity level increases, what happens to the unit fixed cost? a. It decreases. b. It increases. c. It remains the same. d. It depends

If activity level increases, what happens to the unit fixed cost?

a. It decreases.

b. It increases.

c. It remains the same.

d. It depends on how much the activity level increases.

(Answer c is incorrect).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!