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All of the statements below relate to variable and fixed costs. Check all the statements below that are true. ( Hint: This is not a
All of the statements below relate to variable and fixed costs. Check all the statements below that are true. Hint: This is not a typical multiple choice question. You should select more than one answer below
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An example of a fixed cost would be the cost of gas you put into your car each monthAn example of a fixed cost would be the cost of gas you put into your car each month
A variable cost changes in proportion to changes in volume of activityA variable cost changes in proportion to changes in volume of activity
An example of a variable cost would be the direct labor used for a bakery specializing in making wedding cakesAn example of a variable cost would be the direct labor used for a bakery specializing in making wedding cakes
The total amount of a fixed cost each period does not change in proportion to volume of activity, but the amount of a fixed cost per unit does change in proportion to volume of activityThe total amount of a fixed cost each period does not change in proportion to volume of activity, but the amount of a fixed cost per unit does change in proportion to volume of activity
The total amount of a variable cost each period does not change in proportion to volume of activity, but the amount of a variable cost per unit does change in proportion to volume of activity
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