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A Decrease in Denominator Level of Activity Will Lead to Which

Question 39

Multiple Choice

A decrease in denominator level of activity will lead to which of the following?


A) A decrease in the fixed portion of the predetermined overhead rate.
B) An increase in the fixed portion of the predetermined overhead rate.
C) A decrease in the variable portion of the predetermined overhead rate.
D) An increase in the variable portion of the predetermined overhead rate.

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