Within the relevant range of activity fixed costs remain constant in total costs and activity can be approximated by a straight line variable costs do not change in total, only per unit
Within the relevant range of activity fixed costs remain constant in total costs and activity can be approximated by a straight line variable costs do not change in total, only per unit
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3DQ: Describe how total fixed costs and unit fixed costs behave with changes in the level of activity.
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![Within the relevant range of activity
fixed costs remain constant in total
costs and activity can be approximated by a straight line
variable costs do not change in total, only per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F824d2f24-75b7-4f6e-b03e-4a517a8c5f15%2F2af9a34a-ce7a-4fed-ab8d-cbf92dd61b82%2Fip1vifd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Within the relevant range of activity
fixed costs remain constant in total
costs and activity can be approximated by a straight line
variable costs do not change in total, only per unit
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