If activity level increases,what happens to the total fixed cost?
A) It decreases.
B) It increases.
C) It remains the same.
D) It depends on how much the activity level increases.
Correct Answer:
Verified
Q5: Regression is a more precise method of
Q7: With a variable cost, as the level
Q17: Companies should reduce fixed costs whenever possible
Q20: With a fixed cost,the cost per
Q21: Contribution margin = Sales revenue - Total
Q22: Operating income = Sales revenue - Variable
Q23: If activity level decreases,what happens to the
A)It
Q23: When production and sales are equal, a
Q36: Cost behaviors and estimates are valid only
Q39: Contribution margin is the amount of revenue
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents