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Which of the Following Correctly Describes Fixed and Variable Cost

Question 84

Multiple Choice

Which of the following correctly describes fixed and variable cost behavior as total volume increases?


A) Unit fixed costs stay the same and unit variable costs increase.
B) Total fixed costs stay the same and total variable costs increase.
C) Unit fixed costs decrease and total variable costs decrease.
D) Unit fixed costs decrease and unit variable costs decrease.

Correct Answer:

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