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Your company has 2 kinds of expenses. Expense no 1 is fixed cost; expense no 2 is a variable cost. During the current year the
- Your company has 2 kinds of expenses. Expense no 1 is fixed cost; expense no 2 is a variable cost. During the current year the activity level has increased, but is still within the relevant range, in terms of cost per unit activity, expense no 1 will increase/decrease/ remain constant? In terms of cost per unit, expense 2 will increase/decrease/remain constant? [2 Marks]
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