An Increase in the Activity Level Within the Relevant Range

question 107

Multiple Choice

An increase in the activity level within the relevant range results in:

• A)a proportionate increase in total fixed costs.
• B)an increase in fixed cost per unit.
• C)an unchanged fixed cost per unit.
• D)a decrease in fixed cost per unit.

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Definitions:

Continuous Improvements

An ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements.

3PL Provider

A third-party logistics provider that offers outsourced logistics services covering warehousing, transportation, and fulfillment services.

Organization

An entity, typically comprising a group of people, that works toward common goals or objectives, structured in such a way to facilitate management and operations.