Multiple choice

Directions: Choose the correct option for the given question.

cost does not change with the change in activity level.

  1. Overhead

  2. Variable

  3. Fixed

  4. Committed

  5. Semi fixed
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Fixed costs remain constant in total regardless of changes in the level of activity or production volume within a relevant range. Variable costs change in direct proportion to activity levels.

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