Expressing Fixed Costs on a Per Unit Basis of Activity

question 61

Multiple Choice

Expressing fixed costs on a per unit basis of activity is misleading because:

• A)total fixed costs decrease as activity decreases.
• B)total fixed costs increase as activity increases.
• C)fixed cost per unit increases as activity increases.
• D)fixed cost per unit decreases as activity increases.

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Definitions:

Unitary Government

A system of political organization in which most or all of the governing power resides in a centralized government.

Written Constitution

A formal document that defines the structure of a government, the rights of the citizens, and the powers of the authorities; distinct from unwritten or customary constitutions.

United Kingdom

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.

Antifederalists

Antifederalists were opponents of the ratification of the U.S. Constitution, advocating for a decentralized governmental structure to ensure more power to the states.