As sales increase, total fixed costs remain the same, but average fixed costs per unit of sales
A) Increase
B) Decrease
C) Decrease up to a point and increase
D) Remain the same

Name: As sales increase, total fixed costs remain the same, but average fixed costs per unit of sales A) Increase B) Decrease C) Decrease up to a point and increase D) Remain the same
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Question

Quizplus · Accepted Answer

As sales increase, the total fixed costs are spread over more units, leading to a decrease in the average fixed costs per unit.

As Sales Increase, Total Fixed Costs Remain the Same, but Average