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When Production Levels Are Expected to Decline Within a Relevant

Question 97

Multiple Choice

When production levels are expected to decline within a relevant range, what effects would be anticipated with respect to each of the following?  Fixed Costs  Variable Costs  per Unit  per Unit  A)   increase  no change  B)   increase  increase  C)   no change  no change  D)   no change  increase \begin{array} { | l | l | l | } \hline & \text { Fixed Costs } & \text { Variable Costs } \\\hline & \text { per Unit } & { \text { per Unit } } \\\hline \text { A) } & \text { increase } & \text { no change } \\\hline \text { B) } & \text { increase } & \text { increase } \\\hline \text { C) } & \text { no change } & \text { no change } \\\hline \text { D) } & \text { no change } & \text { increase } \\\hline\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

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