When the level of activity increases within the relevant range,what is the effect on the fixed cost per unit?
A)It decreases.
B)It increases at first then decreases.
C)It remains the same.
D)It increases.

Question

Quizplus · Accepted Answer

Fixed cost per unit decreases as the level of activity increases within the relevant range because the total fixed costs are spread over more units, reducing the cost per unit.

When the Level of Activity Increases Within the Relevant Range,what