Which of the Following Describes the Behavior of the Fixed

question 117

Multiple Choice

Which of the following describes the behavior of the fixed cost per unit?

• A) Decreases with increasing production
• B) Decreases with decreasing production
• C) Remains constant with changes in production
• D) Increases with increasing production

---

Definitions:

Not a Product Cost

Costs that are not directly tied to the production of goods or services, such as marketing or administrative expenses.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they occur, such as selling, general, and administrative expenses.

Salespersons

Individuals who are responsible for selling products or services to customers, often tasked with meeting sales quotas and engaging in customer service.

Time Tickets

Documents used to record the amount of a worker's time spent on each job, which can be used for payroll, cost accounting, and project management.