Which of the Following Statements Is TRUE About Fixed and Variable

question 38

Multiple Choice

Which of the following statements is TRUE about fixed and variable costs?

• A)Both costs are constant when considered on a per-unit basis.
• B)Both costs are constant when considered on a total basis.
• C)Fixed costs are constant in total and variable costs are constant per unit.
• D)Variable costs are constant in total and fixed costs are constant per unit.

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Definitions:

Significant Investments

Large or important expenditures of capital in assets, projects, or securities expected to generate future benefits.

Decreased Attractiveness

A decline in the appeal or desirability of a product, service, or market opportunity, resulting in reduced interest or demand.

Labor Costs

The total expenses associated with employing staff, including wages, benefits, and taxes.

Transportation Costs

Expenses associated with moving goods from one location to another within the supply chain.