In a Flexible Budget, What Will Happen to Fixed Costs

question 316

Multiple Choice

In a flexible budget, what will happen to fixed costs as the activity level increases?

• A) The fixed cost per unit will decrease.
• B) The fixed cost per unit will remain unchanged.
• C) The fixed cost per unit will increase.
• D) Fixed costs are not included in a flexible budget.

---

Definitions:

Unaccredited Investors

Individuals or entities that do not meet the criteria set by regulatory authorities to be recognized as accredited investors, involving lower financial thresholds.

Safe Harbor Provision

A legal provision that provides protection from liability under certain conditions, often used in securities, copyright, and tax laws.

Private Securities Litigation Reform Act

A 1995 U.S. federal law designed to increase the legal standards required to file securities fraud lawsuits to protect companies from frivolous litigation.

Prospectus

A detailed document provided by a company about an offering of securities to potential buyers.