Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a. Variable costs are constant if expressed on a per unit basis.b. Total variable costs increase as the level of activity increases.c. The average fixed cost per unit increases as the level of activity increases.d. Total fixed costs decrease as the level of activity decreases
Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a. Variable costs are constant if expressed on a per unit basis.b. Total variable costs increase as the level of activity increases.c. The average fixed cost per unit increases as the level of activity increases.d. Total fixed costs decrease as the level of activity decreases
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...
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Which of the following cost behavior assumptions is true? (You may select more
than one answer.)
a. Variable costs are constant if expressed on a per unit basis.
b. Total variable costs increase as the level of activity increases.
c. The average fixed cost per unit increases as the level of activity increases.
d. Total fixed costs decrease as the level of activity decreases
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