Which of the following statements regarding fixed costs is incorrect? Total fixed costs are constant within...
Which of the following statements regarding fixed costs is incorrect?
|
Total fixed costs are constant within the relevant range. |
|
Fixed costs expressed on a per unit basis will decrease with increases in activity. |
|
Fixed costs expressed on a per unit basis will increase with decreases in activity. |
|
Expressing fixed costs on a per unit basis usually is the best approach for decision making. |
Homework Answers
| Expressing fixed costs on a per unit basis usually is the best approach for decision making is incorrect |
| Fixed costs should be expressed in absolute amount as it remains constant within the relevant range. |
| Expressing fixed costs on a per unit basis is not the correct approach for decision making. |
| Fixed costs expressed on a per unit basis decreases with increases in activity and increases with decrease in activity. |
| Option D should be selected. |
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