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Which of the Following Statements Is True When Referring to Fixed

Question 150

Multiple Choice

Which of the following statements is true when referring to fixed costs?


A) Committed fixed costs arise from the annual decisions by management.
B) As volume increases, unit fixed cost and total fixed cost will change.
C) Fixed costs increase in total throughout the relevant range.
D) Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.

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