Which of the following statements is TRUE about fixed and variable costs?
A)Both costs are constant when considered on a per-unit basis.
B)Both costs are constant when considered on a total basis.
C)Fixed costs are constant in total and variable costs are constant per unit.
D)Variable costs are constant in total and fixed costs are constant per unit.

Question

Quizplus · Accepted Answer

Fixed costs are constant in total, meaning they do not change regardless of the number of units produced. Variable costs, on the other hand, are constant per unit, meaning the cost per unit stays the same regardless of the total number of units produced.

Which of the Following Statements Is TRUE About Fixed and Variable