Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that: cost A has decreased. cost B has remained unchanged. cost B has decreased. cost A has remained unchanged.

Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that: cost A has decreased. cost B has remained unchanged. cost B has decreased. cost A has remained unchanged.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11MC: When should a segment be dropped? A. only when the decrease in total contribution margin is less...

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Question

Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that:

		cost A has decreased.
		cost B has remained unchanged.
		cost B has decreased.
		cost A has remained unchanged.

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