Which of the following statements is true regarding fixed and variable costs?
A) Both costs are constant when considered on a per-unit basis.
B) Both costs are constant when considered on a total basis.
C) Fixed costs are constant in total, and variable costs are constant per unit.
D) Variable costs are constant in total, and fixed costs vary in total.

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the number of units produced, while variable costs increase as more units are produced. Therefore, fixed costs are constant in total and variable costs are constant per unit.

Which of the Following Statements Is True Regarding Fixed and Variable