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Tom Anderson observed that the unit cost for a particular cost (cost # 101) decreased in February compared to January of this year. He further
Tom Anderson observed that the unit cost for a particular cost (cost # 101) decreased in February compared to January of this year. He further observed that the total cost for cost #101 was higher in February compared to January. All other things being equal, which of the following is most likely true?
A.
Cost # 101 is a fixed cost and the volume of activity in February is the same as in January |
B.
Cost # 101 is a mixed cost and the volume of activity has increased in February compared to January |
C.
Cost # 101 is a fixed cost and the volume of activity has increased in February compared to January |
D.
Cost # 101 is a variable cost and the volume of activity has increased in February compared to January |
E.
Cost # 101 is a mixed cost and the volume of activity has decreased in February compared to January |
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