Asked by Chasity Fields on Jun 26, 2024
Verified
Within the relevant range, a difference between variable costs and fixed costs is:
A) variable costs per unit fluctuate and fixed costs per unit remain constant.
B) variable costs per unit are constant and fixed costs per unit fluctuate.
C) both total variable costs and total fixed costs are constant.
D) both total variable costs and total fixed costs fluctuate.
Fixed Costs
Costs that remain constant regardless of the amount of goods produced or sold within a specific timeframe, including rent, salaries, and insurance premiums.
Relevant Range
The range of operating activity within which the assumptions about fixed and variable cost behaviors remain valid.
Fluctuate
To change or vary irregularly in number, amount, volume, or intensity.
- Categorize expenses according to whether they are fixed, variable, or mixed, depending on their response to changes in production levels.
Verified Answer
Learning Objectives
- Categorize expenses according to whether they are fixed, variable, or mixed, depending on their response to changes in production levels.
Related questions
Curvilinear Costs Increase as Volume of Activity Increases,but at a ...
Total Variable Costs Change in Proportion to Changes in Volume ...
A Step-Wise Variable Cost Can Be Separated into a Fixed ...
Total Fixed Costs Change in Proportion to Changes in Volume ...
Variable Costs Per Unit Increase Proportionately with Increases in Volume ...