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If All Volumes Given in a Flexible Budget Are Within

Question 54

Multiple Choice

If all volumes given in a flexible budget are within a company's relevant range of activity,


A) total variable cost will be the same at each volume level and total fixed cost will increase at each higher volume level.
B) total variable cost will increase at each higher volume level and total fixed cost will decrease at each higher volume level.
C) variable cost per unit will be the same at each volume level and fixed cost per unit will increase at each higher volume level.
D) variable cost per unit will be the same at each volume level and fixed cost per unit will decrease at each higher volume level.
E) variable cost per unit will increase at each volume level and fixed cost per unit will decrease at each higher volume level.

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