Which of the following statements is (are)true? (1).The term full cost refers to the cost of manufacturing and selling a unit of product and includes both fixed and variable costs.(2).The fixed cost per unit is considered constant despite changes in volume of activity within the relevant range.
A)Only (1)is true.
B)Only (2)is true.
C)Both (1)and (2)are true.
D)Neither (1)nor (2)are true.

Question

Quizplus · Accepted Answer

The term full cost includes both fixed and variable costs for manufacturing and selling a product. Fixed cost per unit changes with volume changes, so statement (2) is false.

Which of the Following Statements Is (Are)true? (1)