Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

Which of the following statements is correct?

  • ADirect costs change in direct proportion to changes in levels of activity.
  • BFixed costs remain as a constant proportion of total costs when output changes.
  • CSemi-variable costs increase in direct proportion to an increase in production.
  • DStepped costs increase in direct proportion to an increase in production.

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