An Increase in the Level of Activity Will Have the Following

question 56

Short Answer

An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: $\begin{array}{ll}&\text { Unit Variable Cost } & \text { Unit Fixed Cost } \\A.&\text { Increases } & \text { Decreases } \\B.&\text { Remains constant } & \text { Remains constant } \\C.&\text { Decreases } & \text { Remains constant } \\D.&\text { Remains constant } & \text { Decreases }\end{array}$

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments not included in cash equivalents.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of a company.

Operating Activities

Financial transactions and events related to the core business functions of a company, as reported in the cash flow statement.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.