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When a Cost Formula Is Used to Describe a Mixed

Question 5

Multiple Choice

When a cost formula is used to describe a mixed (semi-variable) cost behavior pattern, total costs are expected to increase and per unit variable costs are expected to:


A) increase as the level of activity increases.
B) decrease as the level of activity decreases.
C) decrease as the level of activity increases.
D) remain constant as the level of activity increases.

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