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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 Activity Level Decreases, What Happens to the Unit Variable
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If Activity Level Decreases, What Happens to the Unit Variable

Question 42

Question 42

Multiple Choice

If activity level decreases, what happens to the unit variable cost?


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

Correct Answer:

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