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

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the level of production, while variable costs change with the level of production. 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