For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable. This cost per unit increase may be due to _____________ costs if the level of activity at Jinan is _______________.
A) fixed, decreasing
B) fixed, increasing
C) variable, decreasing
D) variable, increasing

Question

Quizplus · Accepted Answer

Fixed costs spread over fewer units as activity decreases, leading to a higher cost per unit.

For the Past 8 Months, Jinan Corporation Has Experienced a Steady