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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Definitions:

Hot Days

Periods characterized by higher than average temperatures, often leading to discomfort and the need for cooling measures.

Benthic Zone

The ecological region at the lowest level of a body of water such as an ocean, lake, or stream, including the sediment surface and sub-surface layers.

Lake

Body of fresh water, often classified by nutrient status, such as oligotrophic (nutrient-poor) or eutrophic (nutrient-rich).

Stream

A small, natural body of flowing fresh water, leading from one to another or into a larger body of water.