What happen to FIXED and VARIABLE cost per unit when production levels are expected to increase within a relevant range, and a flexible budget is used?

Fixed cost per unit will increase(+) and variable per unit will be unchanged.

When production level is expected to decrease within a relevant range, what effect will it have FIXED and VARIABLE cost per unit?

Fixed cost per unit will decrease(-) and variable per unit be unchanged.

When using a flexible budget, a decrease in production levels within a relevant range will cause what to happen?

Decreases total costs. This is cause from a decrease in total variable cost because of the production of fewer units.

Cost Behavior Patterns Flashcards by Carl Morgan

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Cost Behavior Patterns Flashcards

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