If a firm changes its activity levelall costs should changevariable costs should changeO proportionally with the change in thatactivity levelcosts will not be affectedonly fixed costs will be affectedNone of the above The "total units accounted for" equalsunits in *Units in beginning work in process -units transferred outUnits in beginning work in process +ending work in processUnits in ending work in process + unitscompletedUnits in ending work in process -units started into productionNone of the above

The answers for the multiple choice questions and relevant explanation are presented hereunder :…

If a firm changes its activity level * all costs should change variable costs should change proportionally with the change in that activity level costs will not be affected O only fixed costs will be affected

If a firm changes its activity level * all costs should change variable costs should change proportionally with the change in that activity level costs will not be affected O only fixed costs will be affected

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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