What Happens When the Cost-Driver Activity Level Decreases Within the Relevant

question 141

Multiple Choice

What happens when the cost-driver activity level decreases within the relevant range?

• A) Total fixed costs increase.
• B) Fixed costs per unit of cost driver decrease.
• C) Total variable costs increase.
• D) Variable costs per unit of cost driver are unchanged.

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Definitions:

Discrepancy

A difference or inconsistency between two or more facts, figures, or points of view.

Inequity

The perception or reality of unfair treatment or disparity in resources, rewards, or opportunities among individuals or groups, leading to dissatisfaction and demotivation.

Distributive Fairness

A principle of equitable allocation of resources among individuals, focusing on the fairness of outcomes achieved from decisions.

Equity

The principle of fairness or justice in the distribution of resources, rewards, and treatment among individuals or groups.