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  • Financial Management / Management Accounting III
  • Directions: Choose the correct option for the given quest...
Multiple choice

Directions: Choose the correct option for the given question: Fixed cost per unit remains fixed.

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Fixed cost per unit decreases as production volume increases, because the total fixed cost is spread over more units.

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