IIA Exam IIA-CIA-Part3-3P Topic 7 Question 60 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam

Question #: 60
Topic #: 7

A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle Which of the following statements true recording these costs?

AIf the number of bicycles produced is increased by 15 percent, the variable cost per unit will increase proportionally

BThe fixed cost per unit will vary directly based on the number of bicycles produced during the
production cycle

CThe total variable cost will vary proportionally and inversely with the number of bicycles produced during a production run

DIf the number of bicycles produced is increased by 30 percent the fixed cost per unit will decline

Show Suggested Answer

Suggested Answer: A

by Ilona at Dec 07, 2024, 12:59 AM

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Earleen

9 hours ago

But if the number of bicycles produced increases, wouldn't the total variable cost also increase proportionally?

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Youlanda

2 days ago

I disagree, I believe the answer is A.

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Earleen

4 days ago

I think the answer is C.

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