If Activity Level Increases,what Happens to the Total Fixed Cost

question 50

Multiple Choice

If activity level increases,what happens to the total fixed cost?

• A)It decreases.
• B)It increases.
• C)It remains the same.
• D)It depends on how much the activity level increases.

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Definitions:

Organization's Vision

A statement outlining what an organization wants to become, providing a clear direction for future growth and defining its aspirations.

Tactical Plans

Short-term, specific plans that are part of a larger strategy or strategic plan, aimed at achieving particular aspects of a goal.

Intermediate-Term Plans

Refers to strategic plans developed for a timeframe of typically 2 to 5 years, aiming at achieving medium-range objectives.

Functional Plan

A detailed, department-specific plan designed to achieve operational and strategic objectives within an organization.