EXERCISE 2-13 (15 MINUTES)

4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS 4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS

4. The unit cost for rent dropped from $3.00 to $2.40, because of the in-

crease in production between the two years. Since fixed costs do not

change in total as the activity level changes, they will decrease on a unit

basis as the activity level rises.

Problem 2-28 (60 minutes)