Advertising costs are _______ costs and the per unit cost of advertising _______ as production increases.

Name: Advertising costs are _______ costs and the per unit cost of advertising _______ as production increases.
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Question

Quizplus · Accepted Answer

Advertising costs are fixed costs because they do not change with the level of production or sales volume. The per unit cost of advertising decreases as production increases because the fixed cost is spread over more units.

Advertising Costs Are _______ Costs and the Per Unit Cost