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Which One of the Following Statements Is Not True

Question 6

Multiple Choice

Which one of the following statements is not true?


A) At zero levels of production, total costs = fixed costs.
B) Variable costs are zero when no production takes place.
C) As the number of products produced decreases, the average total cost per product decreases.
D) The cost of salaried production workers is both a direct and a fixed cost that will not vary directly in line with production.

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