Select the correct statement regarding fixed costs. A) Because they do not change, fixed costs should be ignored in decision making. B) The fixed cost per unit decreases when volume increases. C) The fixed cost per unit increases when volume increases. D) The fixed cost per unit does not change when volume decreases
Select the correct statement regarding fixed costs. A) Because they do not change, fixed costs should be ignored in decision making. B) The fixed cost per unit decreases when volume increases. C) The fixed cost per unit increases when volume increases. D) The fixed cost per unit does not change when volume decreases
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...
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Select the correct statement regarding fixed costs.
A) Because they do not change, fixed costs should be ignored in decision making.
B) The fixed cost per unit decreases when volume increases.
C) The fixed cost per unit increases when volume increases.
D) The fixed cost per unit does not change when volume decreases
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