Which One of the Following Statements Is Not True

question 11

Multiple Choice

Which one of the following statements is not true?

• A) Total fixed costs remain the same regardless of volume within the relevant range.
• B) Total variable costs change with volume.
• C) Variable costs per unit remain the same regardless of the volume.
• D) Total variable costs decrease as the volume increases.
• E) Fixed costs per unit increase as the volume decreases.

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Definitions:

Rent Expense

The cost incurred for leasing a property or equipment used in the operation of a business.

Fees Earned

Income generated from providing services, often used in professional practices like law firms, consulting firms, and architectural firms.

Wages Expense

The total amount of compensation paid to employees for services performed during a certain period; this includes salaries, wages, and possibly bonuses.

Balance Sheet

A financial declaration that collates a firm's resources, commitments, and the equity of its shareholders at an established moment.