The CA Hub

ACCA MA · Chapter 3 · Question 7 of 10

As the level of activity increases within the relevant range, what happens to fixed cost per unit?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) It decreases

Explanation

Total fixed cost does not change within the relevant range, so the same total is spread over more units as activity rises. The fixed cost per unit therefore falls.

All 10 questions in Chapter 3Cost classification and cost behaviour MCQs with answers

More Cost classification and cost behaviour MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →