Which One of the Following Statements Is Not

question 165

Multiple Choice

Which one of the following statements is not ?

• A) Total fixed costs remain the same regardless of volume within the relevant range.
• B) Total variable costs change with volume.
• C) Total variable costs decrease as the volume increases.
• D) Fixed costs per unit increase as the volume decreases.
• E) Variable costs per unit remain the same regardless of the volume.

---

Definitions:

Guaranteed Investment Certificate

A secure investment that guarantees to return the principal amount along with a fixed rate of interest at the end of the investment term.

Interest

The cost of borrowing money, calculated as a percentage of the total amount borrowed.

Compounded Annually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Maturity Value

The amount of money that an investment will grow to at the end of its investment period.