As the Volume of Activity Increases Within the Relevant Range

question 8

Multiple Choice

As the volume of activity increases within the relevant range, the variable cost per unit

• A)decreases.
• B)decreases at first, then increases.
• C)remains the same.
• D)increases.

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Definitions:

Payroll Account

A bank account specifically used by businesses to process salary payments to their employees.

Safety Stock

Additional inventory kept to prevent stockouts due to variability in demand or supply lead time.

Banking Relationship

Refers to the business interactions and communications between a bank and its customers, including the services and products offered.

Immediate Decrease

A sudden decrease in value or amount, happening without delay or within a very short time frame.