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Expense A is a fixed cost; expense B is a variable cost. During the current year the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that:

a. expense A has remained unchanged.

b. expense B has decreased.

c. expense A has decreased.

d. expense B has increased.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M979626

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