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A Company Observed a Decrease in the Cost Per Unit

Question 21

Multiple Choice

A company observed a decrease in the cost per unit. All other things being equal, which of the following is most likely true?


A) The company is studying a variable cost, and total volume has increased.
B) The company is studying a variable cost, and total volume has decreased.
C) The company is studying a fixed cost, and total volume has increased.
D) The company is studying a fixed cost, and total volume has decreased.
E) The company is studying a fixed cost, and total volume has remained constant.

Correct Answer:

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