A fixed cost will stay constant on a per unit basis as the volume increases.Fixed costs stay constant in total.On a per unit basis,they decrease as volume increases.

Question

Quizplus · Accepted Answer

On a per unit basis, fixed costs stay constant regardless of the volume of production. However, they do decrease in total as volume increases, as the fixed cost is spread over a larger number of units.

A Fixed Cost Will Stay Constant on a Per Unit