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CVP Analysis Using Activity-Based Costs Will Tend to Shift Some

Question 2

Multiple Choice

CVP analysis using activity-based costs will tend to shift some costs from fixed to variable classifications, resulting in:


A) Lower breakeven sales.
B) Higher breakeven sales.
C) Higher or lower breakeven sales, depending on batch size.
D) A higher contribution margin per unit.
E) A lower contribution margin per unit.

Correct Answer:

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