1C1A CELL COMPANY HAS DISCOVERED THAT THE COST OF PROCESSING CUSTOMER...

155. CSO: 1C1a LOS: 1C1a

Cell Company has discovered that the cost of processing customer invoices is strictly

variable within the relevant range. Which one of the following statements concerning the

cost of processing customer invoices is incorrect?

a. The total cost of processing customer invoices will increase as the volume of

customer invoices increases.

b. The cost per unit for processing customer invoices will decline as the volume of

c. The cost of processing the 100th customer invoice will be the same as the cost of

processing the first customer invoice.

d. The average cost per unit for processing a customer invoice will equal the

incremental cost of processing one more customer invoice.

56