Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that:
A) cost A has remained unchanged.
B) cost B has decreased.
C) cost A has decreased.
D) cost B has remained unchanged.

Question

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The Answer of Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that:
A) cost A has remained unchanged.
B) cost B has decreased.
C) cost A has decreased.
D) cost B has remained unchanged.

Cost a Is a Fixed Cost, While B Is a Variable