Answered: When the level of activity increases,…

When the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14MC: When fixed costs increase and all other variables remain unchanged, the contribution margin will A....

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Question

When the level of activity increases, total fixed costs
a. decrease.
b. remain the same.
c. increase.
d. change, but the direction depends on the specific situation.

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