Which one of the following statements is not true?
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 may increase or remain constant as volume increases, but they do not decrease. The more units produced, the more variable costs are incurred.

Which One of the Following Statements Is Not True