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Question : Learning Objective 20-1 1) Fixed costs per unit inversely proportional to

Learning Objective 20-1

1) Fixed costs per unit is inversely proportional to the volume of units produced.

2) Total variable costs change in direct proportion to changes in the volume of production.

3) Variable cost per unit is constant throughout various relevant ranges.

4) Fixed costs per unit decrease as production levels decrease.

5) If the volume of activity doubles in the relevant range, total variable costs will also double.

6) Fixed cost per unit is assumed to be constant within a particular relevant range of activity.

7) Total variable costs change in direct proportion to a change in volume.

8) During the current year, Simpson Inc. incurred $5,000 fixed and $12,000 variable costs. If the number of units produced is halved next year, the company will incur $2,500 as fixed and $6,000 as variable costs.

9) Within the relevant range, the total fixed costs and the variable cost per unit remain the same.

10) Total fixed costs can change from one relevant range to another.

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