Which one of the following statements is not true?
A) Total fixed costs remain the same regardless of volume.
B) Total variable costs change with volume.
C) Total variable costs decrease as the volume increases.
D) Fixed costs per unit increase as the volume decreases.
E) Variable costs per unit remain the same regardless of the volume.

Question

Quizplus · Accepted Answer

Total variable costs may decrease at some point with an increase in volume, but it is not always the case. It depends on the nature of the cost and the production process. The statement that variable costs always decrease with volume is not true.

Which One of the Following Statements Is Not True