Within the relevant range, a change in activity results in a change in variable cost per unit and total fixed cost.

Question

Quizplus · Accepted Answer

Within the relevant range, a change in activity results in a change in total variable cost but does not change the variable cost per unit or total fixed cost. Variable cost per unit remains constant with changes in activity level, and total fixed cost remains unchanged within the relevant range of activity.

Within the Relevant Range, a Change in Activity Results in a Change