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    Managerial Accounting Study Set 6
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    Exam 2: Cost Behavior and Cost Estimation
  5. Question
    If Activity Level Decreases,what Happens to the Total Fixed Cost
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If Activity Level Decreases,what Happens to the Total Fixed Cost

Question 4

Question 4

Multiple Choice

If activity level decreases,what happens to the total fixed 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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