question archive Fixed cost remains constant, in total, regardless of changes in the level of the activity
Fixed cost remains constant, in total, regardless of changes in the level of the activity
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Fixed cost remains constant, in total, regardless of changes in the level of the activity. However, if expressed on a per unit basis, the average fixed cost per unit varies inversely with changes in activity.
A. True
B. False
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Answer : True
Fixed cost Remains Constant with in the relevant range of Activity. Fixed cost per Unit is Reduiced if the Activity increased .
Fixed cost Per Unit = ( Total Fixed Cost / Units Produced)
Fixed cost per Unit and total activity is inversely related.
