Which of the Following Is the Difference Between Variable Costs

question 42

Multiple Choice

Which of the following is the difference between variable costs and fixed costs? (CMA adapted)

• A) Variable costs per unit fluctuate and fixed costs per unit remain constant.
• B) Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable.
• C) Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change.
• D) Variable costs per unit change in varying increments, while fixed costs per unit change in equal units.