When a Cost Formula Is Used to Describe a Mixed

question 38

Multiple Choice

When a cost formula is used to describe a mixed (semi-variable) cost behavior pattern, total costs are expected to increase and per unit variable costs are expected to:

• A) increase as the level of activity increases.
• B) decrease as the level of activity decreases.
• C) decrease as the level of activity increases.
• D)remain constant as the level of activity increases.