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Select the Incorrect Statement Regarding Fixed and Variable Costs

Question 144

Multiple Choice

Select the incorrect statement regarding fixed and variable costs.


A) Fixed cost per unit remains constant as the number of units increases.
B) Total variable cost is represented by a straight line sloping upward from the origin when total variable cost is graphed versus number of units.
C) The concept of relevant range applies to both fixed costs and variable costs.
D) The terms "fixed" and "variable" refer to the behavior of total cost.

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