Within the Relevant Range,if There Is a Change in the Level

question 238

Multiple Choice

Within the relevant range,if there is a change in the level of the cost driver,then:

• A)total fixed costs will change and total variable costs will remain the same
• B)total fixed costs and total variable costs will remain the same
• C)total fixed costs and total variable costs will change
• D)total fixed costs will remain the same and total variable costs will change

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business.

Sales Mix

The composition of a company's various product or service offerings and their relative contributions to overall sales and profitability.

Unit Price

The cost per single item or measure, which allows for the comparison of costs among different units.

Fixed Costs

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.