Practice Question 03 Which statement describes a fixed cost? O The unit cost varies directly to the activity level O The unit costs stay the same at every activity level. when activity declines, its cost per unit increases. It varies in total at every level of activity. Practice Question 08 Mixed costs consist of a variable cost element and a relevant cost element. variable cost element and a fixed cost element. fixed cost element and a controllable cost element. relevant cost element and a controllable cost element