Answered: Within the relevant range of activity…

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

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