Identify the following statements as correct or incorrect regarding cost behavior.
1) Variable costs change in total and per unit when a given level of activity level changes.
2) Fixed costs remain the same in total but change inversely with a given change in an activity level.
3) The relevant range relates to all levels of activity even if it extends beyond the current capacity of the company.
4) Variable costs and fixed costs will always change on a per unit basis when the activity level changes.

Question

Identify the following statements as correct or incorrect regarding cost behavior. 
1) Variable costs change in total and per unit when a given level of activity level changes. 
2) Fixed costs remain the same in total but change inversely with a given change in an activity level. 
3) The relevant range relates to all levels of activity even if it extends beyond the current capacity of the company. 
4) Variable costs and fixed costs will always change on a per unit basis when the activity level changes.

Quizplus · Accepted Answer

The Answer of Identify the following statements as correct or incorrect regarding cost behavior. 
1) Variable costs change in total and per unit when a given level of activity level changes. 
2) Fixed costs remain the same in total but change inversely with a given change in an activity level. 
3) The relevant range relates to all levels of activity even if it extends beyond the current capacity of the company. 
4) Variable costs and fixed costs will always change on a per unit basis when the activity level changes.

Identify the Following Statements as Correct or Incorrect Regarding Cost