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

Fixed costs remain constant in total regardless of activity level, but the per-unit fixed cost changes as the activity level changes.

The True Statement About Cost Behavior Is That