The true statement about cost behavior is that:
A) variable costs are constant on a per-unit basis and change in total as activity changes.
B) fixed costs are constant on a per-unit basis and change in total as activity changes.
C) fixed costs are constant on a per-unit basis and constant in total as activity changes.
D) variable costs change on a per-unit basis and change in total as activity changes.
E) variable costs are constant on a per-unit basis and are constant in total as activity changes.

Question

Quizplus · Accepted Answer

Variable costs remain constant on a per-unit basis but change in total with changes in the level of activity.

The True Statement About Cost Behavior Is That