2 MIXED COSTA. UNIT FIXED COSTS DECREASE AS VOLUME IN-VARIABLE COSTC...

5- - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE

5-2

Mixed Cost

a.

Unit fixed costs decrease as volume in-

Variable Cost

creases.

b.

Unit variable costs remain constant as vol-

ume increases.

c.

Total fixed costs remain constant as volume

Cost

increases.

d.

Total variable costs increase as volume in-

creases.

Step-Variable Cost