Select the Incorrect Statement Regarding Fixed and Variable Costs

question 144

Multiple Choice

Select the incorrect statement regarding fixed and variable costs.

• A) Fixed cost per unit remains constant as the number of units increases.
• B) Total variable cost is represented by a straight line sloping upward from the origin when total variable cost is graphed versus number of units.
• C) The concept of relevant range applies to both fixed costs and variable costs.
• D) The terms "fixed" and "variable" refer to the behavior of total cost.

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Definitions:

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Set-Point

A theory suggesting that the body regulates its weight and energy balance through internal controls, maintaining a stable weight over time.

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