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Question(s) / Instruction(s):

A is a fixed cost; B is a variable cost. During the current year the level of activity has decreased but is still within the relevant range. We would expect that:

 a)           The cost per unit of A has remained unchanged.

 b)           The cost per unit of B has decreased.

 c)           The cost per unit of A has decreased.

 d)           The cost per unit of B has remained unchanged.

 

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