When Volume Increases,fixed Cost Per Unit

question 93

Multiple Choice

When volume increases,fixed cost per unit:

• A)Increases.
• B)Decreases.
• C)Stays the same.
• D)Increases or decreases,depending upon the situation.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies by recognizing income and changes in investment value.

Book Value

The net value of an asset or liability recorded in financial statements, calculated as original cost minus accumulated depreciation or amortization.

Available-for-sale Debt Investment

A type of financial asset representing debt instruments that a company plans to sell before their maturity date but are not actively traded for profit in the short term.

Unrealized Gain-Equity

An increase in the value of an investment or asset that has not been sold, as recorded in the equity section of the balance sheet.