Which One of the Following Statements About Costs Is Correct

Multiple Choice

Which one of the following statements about costs is correct?

A) Total costs will decrease as the variable cost per unit increases, all else held constant.
B) A decrease in total fixed costs will increase the net present value of a project, all else held constant.
C) An increase in the variable cost per unit will increase the contribution margin, all else held constant.
D) Total costs will be greater under the best-case scenario than under the base-case scenario.
E) The higher the total costs, the larger the net present value of a project.