Which of the following is true?
A) It is generally assumed that variable costs remain approximately the same per unit of output, regardless of the volume of sales.
B) It is generally assumed that variable costs become less per unit as sales decrease.
C) It is generally assumed that total variable costs are unaffected by a reduction in sales.
D) It is generally assumed that variable costs become less per unit as sales increase, but at a diminishing rate.
E) None of the above are true statements
Correct Answer:
Verified
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A) Management
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A) Allocated to individual departments
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