The representation for fixed cost per unit of activity is
A)vx divided by v.
B)vx divided by y.
C)y divided by x.
D)f divided by x.

Question

Quizplus · Accepted Answer

The fixed cost per unit of activity is represented by the formula f/x, where f represents fixed cost and x represents the level of activity. This is because as the level of activity increases or decreases, the fixed cost remains the same, but the cost per unit of activity decreases or increases accordingly. Therefore, the correct choice is D, f divided by x.

The Representation for Fixed Cost Per Unit of Activity Is