Which of the following is true if the volume of sales increases (within a relevant range)?
A) total fixed cost increases
B) total variable cost decreases
C) total variable cost increases
D) total fixed cost decreases

Question

Quizplus · Accepted Answer

When the volume of sales increases, the total variable cost increases as more resources are needed to produce and sell additional units. Total fixed cost remains constant as it does not change with production levels within a relevant range.

Which of the Following Is True If the Volume of Sales