As volume increases, which of the following statements is not correct?
A) Variable cost per unit will remain the same.
B) Total fixed will remain the same.
C) Average cost per unit will increase.
D) Total variable costs will increase.

Question

Quizplus · Accepted Answer

As volume increases, variable cost per unit remains the same (A), total fixed costs remain the same (B), and total variable costs increase (D). However, average cost per unit typically decreases due to the spreading of fixed costs over a larger number of units, making statement C incorrect.

As Volume Increases, Which of the Following Statements Is Not