When the volume of activity increases within the relevant range, the fixed cost per unit
A)decreases at first, then increases.
B)remains the same.
C)decreases.
D)increases.

Question

Quizplus · Accepted Answer

When the volume of activity increases within the relevant range, the fixed cost remains the same, but it is allocated over a larger number of units, resulting in a decrease in fixed cost per unit. Therefore, the correct answer is C) decreases.

When the Volume of Activity Increases Within the Relevant Range