Reference no: EM132967919

Problem 1: What will result from an increase in the activity level within the relevant range?

Select one:

a. A decrease in fixed cost per unit.
b. An unchanged fixed cost per unit.
c. A proportionate increase in total fixed costs.
d. An increase in fixed cost per unit.

Problem 2: The linear equation Y = a + bX is often used to express cost formulas. Which of the following representations in this equation is correct?

Select one:

a. The Y term represents total fixed costs.
b. The b term represents variable cost per unit of activity.
c. The X term represents total costs.
d. The a term represents variable cost in total.