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    Managerial Accounting Study Set 24
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    Exam 2: Cost Behavior and Cost Estimation
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    If the Activity Level Increases, What Happens to the Unit
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If the Activity Level Increases, What Happens to the Unit

Question 78

Question 78

Multiple Choice

If the activity level increases, what happens to the unit fixed cost?


A) It decreases.
B) It increases.
C) It remains the same.
D) It depends on how much the activity level increases.

Correct Answer:

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