Select the incorrect statement regarding the relevant range of volume.
A) Total fixed costs are expected to remain constant.
B) Total variable costs are expected to vary in direct proportion with changes in volume.
C) Variable cost per unit is expected to remain constant.
D) Total cost per unit is expected to remain constant.

Question

Quizplus · Accepted Answer

Total cost per unit does not remain constant because as volume changes, the fixed cost portion per unit changes while the variable cost per unit remains constant. Total cost per unit is the sum of the variable cost per unit and the fixed cost allocated per unit, which varies with volume.

Select the Incorrect Statement Regarding the Relevant Range of Volume