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When Using a Cost Formula to Determine Total Expected Costs

Question 15

Multiple Choice

When using a cost formula to determine total expected costs for cost items having a mixed (semi-variable) cost behavior pattern, total costs are expected to decrease and per unit variable costs are expected to:


A) increase as the level of activity increases.
B) decrease as the level of activity decreases.
C) decrease as the level of activity increases.
D) remain constant as the level of activity decreases.

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