Which of the following statements is true?
A)Fixed costs are constant on a per unit basis.
B)Variable costs per unit decrease as activity volume increases.
C)Variable costs are constant in total dollars.
D)Fixed costs are constant in total dollars.

Question

Quizplus · Accepted Answer

Fixed costs are constant in total dollars. This means that regardless of the level of activity, the total amount of fixed costs remains the same. For example, if a company's rent expense is $10,000 per month, it will remain at $10,000 whether the company produces 1,000 units or 10,000 units.

Which of the Following Statements Is True