Within the relevant range, if there is a change in the level of the cost driver, then ________.
A) total fixed costs and total variable costs will change
B) total fixed costs and total variable costs will remain the same
C) total fixed costs will remain the same and total variable costs will change
D) total fixed costs will change and total variable costs will remain the same

Question

Quizplus · Accepted Answer

Within the relevant range, fixed costs remain constant regardless of changes in the level of the cost driver, while variable costs change in proportion to changes in the level of the cost driver. Therefore, if there is a change in the level of the cost driver, total fixed costs will remain the same and total variable costs will change.

Within the Relevant Range, If There Is a Change in the Level