In Contrast to a Variable Cost

question 12

Multiple Choice

In contrast to a variable cost,

• A)the total amount of a fixed cost does not change with activity level.
• B)the total amount of a fixed cost increases as activity increases.
• C)the per unit amount of a fixed cost does not change with activity level.
• D)the per unit amount of a fixed cost increases as activity increases.

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Definitions:

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