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:

HRM Activities

Tasks and functions conducted by the human resources department, including recruitment, training, employee relations, and benefits administration.

HR Profession

The field focused on recruiting, managing, and developing an organization's workforce.

Immanuel Kant

A German philosopher, known for his work in epistemology, ethics, and aesthetics, who profoundly influenced modern Western thought.