The True Statement About Cost Behavior Is That

question 100

Multiple Choice

The true statement about cost behavior is that:

• A) variable costs are constant on a per-unit basis and change in total as activity changes.
• B) fixed costs are constant on a per-unit basis and change in total as activity changes.
• C) fixed costs are constant on a per-unit basis and constant in total as activity changes.
• D) variable costs change on a per-unit basis and change in total as activity changes.
• E) variable costs are constant on a per-unit basis and are constant in total as activity changes.

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Definitions:

Ionic Formula

A notation that represents the composition of an ionic compound by showing the ratio of ions present in the compound.

Compound

A substance formed from two or more chemical elements chemically bonded together, with a fixed ratio determining its composition.

Fe2+

Ferrous ion, a form of the iron ion where iron has a valency of +2, commonly involved in redox reactions and an essential part of hemoglobin.

Oxygen

A chemical element with symbol O and atomic number 8, essential for respiration of living organisms and combustion processes.