Which of the following is true if the production volume decreases?
A) fixed cost per unit increases
B) average cost per unit decreases
C) variable cost per unit increases
D) variable cost per unit decreases

Question

Quizplus · Accepted Answer

When production volume decreases, the fixed costs associated with production are spread over a smaller number of units, leading to an increase in fixed cost per unit.

Which of the Following Is True If the Production Volume