Answer the following statements true (T) or false (F)
1. While the total amount of fixed cost changes with the level of production, fixed cost per unit remains constant as volume changes.
2. While the total amount of fixed cost remains constant with the level of production, fixed cost per unit changes as volume changes.
3. Dividing a mixed cost into its separate fixed and variable cost components makes it more difficult to perform cost-volume-profit analysis.
4. As the volume increases, fixed cost per unit of output remains constant.
5. As the level of volume of activity increases, the variable cost per unit remains constant.
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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