What Will Fixed Costs Do When Activity Increases but Remains

question 12

Multiple Choice

What will fixed costs do when activity increases but remains within the relevant range of activity?

• A) Increase
• B) Remain the same
• C) Decrease
• D) Display an erratic behaviour

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Definitions:

Benzene

A colorless, flammable liquid hydrocarbon with a distinct sweet smell, known for its carcinogenic properties and widespread use as a precursor in the manufacture of various chemicals.

Toluene

A colorless, water-insoluble liquid hydrocarbon with a sweet smell, used as an industrial solvent and in the production of benzene.

Stereogenic Center

An atom in a molecule, often carbon, that is connected to four different groups, giving rise to stereoisomers due to the spatial arrangement of these groups.