Regarding overhead costs, as volume increases:
A) Unit fixed cost increases, unit variable cost decreases.
B) Unit fixed cost decreases, unit variable cost increases.
C) Unit variable cost decreases, unit fixed cost remains constant.
D) Unit fixed cost decreases, unit variable cost remains constant.
E) Both unit fixed cost and unit variable cost remain constant.

Question

Quizplus · Accepted Answer

Unit fixed cost decreases because the total fixed cost is spread over more units, but unit variable cost remains constant per unit as volume increases.

Regarding Overhead Costs, as Volume Increases