A Primary Difference Between Variable Costs and Fixed Costs Is

question 40

Multiple Choice

A primary difference between variable costs and fixed costs is:

• A) Variable costs per unit change in varying increments while fixed costs per unit change in equal increments over the relevant range of activity.
• B) Variable costs per unit fluctuate and fixed costs per unit remain constant over the relevant range of activity.
• C) Variable costs per unit are fixed and fixed costs per unit are variable over the relevant range of activity.
• D) Variable costs per unit change in equal increments while total fixed costs change in proportion to the level of activity over the company's relevant range.
• E) Total variable costs are fixed and fixed costs per unit never change over the relevant range of activity.

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