Mosely Company's per-unit cost is the same at all levels of activity. The company's cost structure must have all:

Question

Quizplus · Accepted Answer

If Mosely Company's per-unit cost is the same at all levels of activity, it means that the cost per unit changes with the level of activity, indicating the presence of variable costs. Therefore, option B (variable costs) is the best choice. Fixed costs remain constant regardless of the level of activity, mixed costs contain both fixed and variable elements, and stepped costs increase in a step-like manner as the activity level changes, which contradicts the given information about Mosely Company's cost structure.

Mosely Company's Per-Unit Cost Is the Same at All Levels