Wednesday 8 November 2023

When using a flexible budget, a decrease in production levels within a relevant range

 When using a flexible budget, a decrease in production levels within a relevant range
Decreases variable cost per unit.
Decreases total costs.
Increases total fixed costs.
Increases variable cost per unit.
 You Answered Correctly!
Total costs decrease when production decreases. The decrease equals the decline in total variable costs resulting from the production of fewer units. Fixed costs are assumed to be constant.

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