Asked by Jahmorai Thomas on Jun 03, 2024
Verified
If the activity level increases, then one would expect the fixed cost per unit to increase as well.
Fixed Cost Per Unit
The cost that remains constant in total but varies inversely with the level of production or sales volume.
- Recognize how variable and fixed costs respond to changes in activity levels and understand the financial implications of such changes.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
False
Explanation :
The fixed cost per unit remains the same regardless of the activity level. It is the variable cost per unit that increases with an increase in activity level.
Learning Objectives
- Recognize how variable and fixed costs respond to changes in activity levels and understand the financial implications of such changes.