Which of the following is the difference between variable costs and fixed costs? (CMA adapted)
A) Variable costs per unit fluctuate and fixed costs per unit remain constant.
B) Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable.
C) Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change.
D) Variable costs per unit change in varying increments, while fixed costs per unit change in equal units.

Question

Quizplus · Accepted Answer

Variable costs per unit remain constant over the relevant range, while total variable costs change with activity level. Fixed costs per unit vary with activity level, as total fixed costs remain constant over the relevant range.

Which of the Following Is the Difference Between Variable Costs