Fixed costs expressed on a per unit basis:
Chapter1: Financial Statements And Business Decisions
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Question 8?
Transcribed Image Text:QUESTION 8
Fixed costs expressed on a per unit basis:
should be ignored in making decisions since they cannot change.
decrease with increases in activity.
increase with increases in activity.
are not affected by activity.
OO
Expert Solution
Step 1
Variable cost is the cost that varies with the change in output. Whereas, the per unit variable cost remains the same for all the output in the production process.
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