Which of the following statements are true? 1. If the activity level increases, then one would expect the fixed cost per unit to increase as well. 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per unit. O Only statement III is true. Statements I and III are true. Only statement II is true. Statements I and II are true.

Which of the following statements are true? 1. If the activity level increases, then one would expect the fixed cost per unit to increase as well. 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per unit. O Only statement III is true. Statements I and III are true. Only statement II is true. Statements I and II are true.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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