Which of the Following Most Accurately Explains the Behaviour of Costs

question 42

Multiple Choice

Which of the following most accurately explains the behaviour of costs?

• A) The majority of costs are fixed per unit of production.
• B) The majority of costs are variable per unit of production.
• C) Costs can be fixed or variable but not a combination of both.
• D) There is no norm; costs can be fixed, variable or a combination of both.

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