Ask Question
28 June, 05:59

Which costs will change with a decrease in activity within the relevant range? Select one:

a. Unit variable cost and unit fixed cost.

b. Unit fixed costs and total variable cost

c. Unit fixed cost and total fixed cost.

d. Total fixed costs and total variable cost.

+4
Answers (1)
  1. 28 June, 09:01
    0
    The correct answer is option b.

    Explanation:

    The fixed costs refer to that part of the cost of production which is not affected by the volume of activity. The total fixed cost remains constant in the entire production process.

    The fixed cost per unit is the ratio of total fixed costs and the level of output. It increases with a decrease in level of activity.

    The variable cost is the cost incurred on the variable inputs employed in the process of production. As the level of activity declines the number of variable factors employed will also decline. This will cause the total variable cost to decrease.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which costs will change with a decrease in activity within the relevant range? Select one: a. Unit variable cost and unit fixed cost. b. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers