Within the relevant range, the difference between variable costs and fixed costs is:
A) variable costs per unit fluctuate and fixed costs per unit remain constant.
B) variable costs per unit are constant and fixed costs per unit fluctuate.
C) both total variable costs and total fixed costs are constant.
D) both total variable costs and total fixed costs fluctuate.

Question

Quizplus · Accepted Answer

Within the relevant range, variable costs per unit remain constant, while total variable costs fluctuate with changes in activity level. Fixed costs per unit fluctuate because total fixed costs remain constant regardless of activity level.

Within the Relevant Range, the Difference Between Variable Costs and Fixed