Question

If you were to delegate common fixed costs to segments (DO NOT DO THIS), it would reduce the value of the ___ ____ number.

Answer 1

The average fixed cost curve starts high and slopes downward as the quantity of output increases. Spreading the overhead refers to allocating or assigning the fixed costs to different segments or products, which would decrease the value of the average fixed cost number.

Step-by-step explanation:

The average fixed cost curve starts high and slopes downward as the quantity of output increases.

Spreading the overhead refers to allocating or assigning the fixed costs to different segments or products. This can be done by dividing the total fixed costs by the number of segments or products. By doing so, the value of the average fixed cost number would decrease.