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Which of the following statements is true? 1 ) If activity is higher than expected, total variable costs should be higher than expected AND If

Which of the following statements is true?
1) If activity is higher than expected, total variable costs should be higher than expected AND If activity is lower than expected, total fixed costs should be lower than expected.
2. In a flexible budget, when the activity declines, the unit variable cost also declines.
A) Only statement I is true.
B) Only statement II is true.
C) Both statements are true.
D) Neither statement is true.

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