Which of the following statements are true? 1. If the activity level increases, then one would expect the fixed cost per unit to increase as well. 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per unit. O Only statement III is true. Statements I and III are true. Only statement II is true. Statements I and II are true.
Which of the following statements are true? 1. If the activity level increases, then one would expect the fixed cost per unit to increase as well. 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per unit. O Only statement III is true. Statements I and III are true. Only statement II is true. Statements I and II are true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 7?
Transcribed Image Text:QUESTION 7
Which of the following statements are true?
1. If the activity level increases, then one would expect the fixed cost
per unit to increase as well.
2. A fixed cost is a cost whose cost per unit varies as the activity
level rises and falls.
3. A decrease in production will ordinarily result in a decrease in fixed
production costs per unit.
O Only statement III is true.
Statements I and III are true.
Only statement II is true.
Statements I and II are true.
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