Correct Answer:
A. Decreases
Total fixed cost is constant, so the cost per unit falls as units increase.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
As production volume increases within the relevant range, fixed cost per unit:
Related MCQs
A budget deficit occurs when:
A.
Government expenditure exceeds government revenue
B.
Government revenue exceeds expenditure
C.
Revenue equals expenditure
D.
Public debt is zero
Correct answer is:
A. Government expenditure exceeds government revenue
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The allowance for doubtful debts is presented in the statement of financial position as:
A.
An addition to trade receivables
B.
A current liability only
C.
A deduction from trade receivables
D.
An item of equity
Correct answer is:
C. A deduction from trade receivables
Do you agree with this answer?
Which of the following is an adjusting event after the reporting period?
A.
A fire destroying a warehouse after year end
B.
Announcement of a major acquisition after year end
C.
A fall in market value of investments caused by events after year end
D.
A court case settled after year end confirming an obligation that existed at the reporting date
Correct answer is:
D. A court case settled after year end confirming an obligation that existed at the reporting date
Do you agree with this answer?
Expenditure charged upon the Federal Consolidated Fund (Article 81) is:
A.
Voted separately by the Senate
B.
Free of any audit
C.
Paid only from provincial funds
D.
Not submitted to a vote in the National Assembly, though it may be discussed
Correct answer is:
D. Not submitted to a vote in the National Assembly, though it may be discussed
Do you agree with this answer?
A flexible budget is a budget that:
A.
Never changes
B.
Includes only fixed costs
C.
Is adjusted to the actual level of activity achieved
D.
Is prepared without forecasting
Correct answer is:
C. Is adjusted to the actual level of activity achieved
Do you agree with this answer?
The normal balance of an asset account is:
A.
Debit
B.
Credit
C.
Zero
D.
Either debit or credit depending on the month
Correct answer is:
A. Debit
Do you agree with this answer?
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