A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n)
A)expired cost.
B)fixed cost.
C)variable cost.
D)mixed cost.

Question

Quizplus · Accepted Answer

Fixed costs remain constant in total regardless of changes in the level of activity. However, on a per-unit basis, these costs will vary inversely with changes in activity.

A Cost That Remains Constant in Total but Varies on a Per-Unit