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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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