Which one of the following statements is not ?
A) Total fixed costs remain the same regardless of volume within the relevant range.
B) Total variable costs change with volume.
C) Total variable costs decrease as the volume increases.
D) Fixed costs per unit increase as the volume decreases.
E) Variable costs per unit remain the same regardless of the volume.

Question

Quizplus · Accepted Answer

Total variable costs actually increase as the volume increases, not decrease. This is because variable costs change in direct proportion to changes in volume of activity.

Which One of the Following Statements Is Not