Question: DC Corporation is analysing its fixed and variable costs within its current relevant range. As its activity changes within the relevant range, which of the
DC Corporation is analysing its fixed and variable costs within its current relevant range. As its activity changes within the relevant range, which of the following statements isare correct?
I. As the activity level increases, the total fixed cost remains unchanged.
II As the activity level increases, unit fixed cost increases.
III. As the activity level decreases, unit variable cost decreases.
A
I, II and III are correct.
B
I and II are correct.
C
Only I is correct.
D
II and III only are correct.
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