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In: Finance

Within the relevant range, the difference between variable costs and fixed costs is: (2) a. variable...

Within the relevant range, the difference between variable costs and fixed costs is:

(2) a. variable costs per unit fluctuate and fixed costs per unit remain constant

. b. both total variable costs and total fixed costs are constant.

c. both total variable costs and total fixed costs fluctuate.

d. variable costs per unit are constant and fixed costs per unit fluctuate.

Solutions

Expert Solution

option a is correct

Variable costs are linked with the sales and quantity sold. hence these costs fluctuate with per unit. these costs include material cost.

Fixed costs are fixed in nature. these include admin expesnes, power expesnes, office expesnes etc., which will not change in the units sold.

jeff jeffy answered 2 years ago
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