When the volume of activity increases within the relevant range,how does the fixed cost per unit respond?
A)It decreases.
B)It decreases at first,then increases.
C)It increases at first,then decreases.
D)It increases.

Question

Quizplus · Accepted Answer

As the volume of activity increases within the relevant range, fixed costs remain constant in total amount but are spread over a larger number of units. Therefore, the fixed cost per unit decreases.

When the Volume of Activity Increases Within the Relevant Range,how