Expense a Is a Fixed Cost; Expense B Is a Variable

question 91

Multiple Choice

Expense A is a fixed cost; expense B is a variable cost.During the current year,the activity level has increased but is still within the relevant range.In terms of cost per unit of activity,you would expect which of the following statements to be true?

• A) Expense A has remained unchanged.
• B) Expense B has decreased.
• C) Expense A has decreased.
• D) Expense B has increased.

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Definitions:

Tapered

Describes an object or structure that gradually decreases in thickness or width towards one end.

Tie Rod

A crucial part of the steering mechanism that transmits force from the steering center link or rack gear to the steering knuckle, causing the wheels to turn.

Toe Setting

An alignment parameter that refers to the angle of the wheels in relation to the vehicle's longitudinal axis, affecting handling and tire wear.

Toe-out

A wheel alignment term referring to wheels that are angled outward at the front edges more than the rear edges, a slight adjustment can improve steering response.