Which one of the following statements is not true?
A) Total fixed costs remain the same regardless of volume within the relevant range.
B) Total variable costs change with volume.
C) Variable costs per unit remain the same regardless of the volume.
D) Total variable costs decrease as the volume increases.
E) Fixed costs per unit increase as the volume decreases.

Question

Quizplus · Accepted Answer

Total variable costs increase as the volume increases, not decrease. Variable costs per unit remain constant, so as more units are produced, the total variable costs will rise.

Which One of the Following Statements Is Not True