BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ABC Sdn Bhd produces a unique Product 123, and has the capacity to produce 50, 000 units annually. Currently ABC Sdn Bhd produces 40, 000 units and is thinking about increasing production to 45, 000 units next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change?
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Total manufacturing costs will increase and unit manufacturing costs will stay the same.
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Total manufacturing costs will increase and unit manufacturing costs will decrease.
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Total manufacturing costs will stay the same and unit manufacturing costs will stay the same.
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Total manufacturing costs will stay the same and unit manufacturing costs will decrease.
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Explanation:
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