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Which Statement Best Describes How Fixed and Variable Costs Behave

Question 115

Multiple Choice

Which statement best describes how fixed and variable costs behave per unit and in total?


A) Both costs are constant when considered on a per-unit basis.
B) Both costs are constant when considered on a total basis.
C) Fixed costs are constant in total and variable costs are constant per unit.
D) Variable costs are constant in total and fixed costs are constant per unit.

Correct Answer:

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