Which of the Following Is True If the Production Volume

question 21

Multiple Choice

Which of the following is true if the production volume decreases?

• A) fixed cost per unit increases
• B) average cost per unit decreases
• C) variable cost per unit increases
• D) variable cost per unit decreases

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Definitions:

Answerability

Refers to the obligation of individuals or entities to provide an explanation or justification for their actions to stakeholders or governing bodies.

Liability

The state of being legally responsible for something, especially in terms of financial or other penalties.

Disseminating

The act of spreading information, knowledge, or ideas widely.

Collecting

The act of gathering items or information systemically, often as a hobby, for research, or for the purpose of analysis and decision-making.