If the level of activity increases within the relevant range:
A)variable cost per unit and total fixed costs also increase.
B)fixed cost per unit and total variable cost also increase.
C)total cost will increase and fixed cost per unit will decrease.
D)variable cost per unit and total cost also increase.

Question

Quizplus · Accepted Answer

As activity increases, total costs increase due to variable costs, while fixed cost per unit decreases because the same fixed costs are spread over more units.

If the Level of Activity Increases Within the Relevant Range