Which Costs Will Change with a Decrease in Activity Within

question 19

Multiple Choice

Which costs will change with a decrease in activity within the relevant range?

• A) Total fixed costs and total variable costs.
• B) Unit fixed cost and total variable costs.
• C) Unit variable cost and unit fixed cost.
• D) Unit fixed cost and total fixed costs.

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Definitions:

Professional Misconduct

Refers to inappropriate or unethical behavior by a professional in their occupation, often leading to disciplinary action.

Accountant

A professional who performs accounting functions such as audits or financial statement analysis.

Privity

A relationship between two parties that is recognized by law, such as a contractual relationship.

Contractual Relation

The connection between parties that is established by the terms and conditions of a contract.