Which of the Following Is a True Statement About Cost

question 32

Multiple Choice

Which of the following is a true statement about cost behaviors in incremental analysis?
1) Fixed costs will not change between alternatives.
2) Fixed costs may change between alternatives.
3) Variable costs will always change between alternatives.

• A) only 1
• B) only 2
• C) only 3
• D) both 2 and 3

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