Practice Question 03 Which statement describes a fixed cost? The unit costs stay the same at every activity level. O It varies in total at every level of activity. When activity declines, its cost per unit increases. The unit cost varies directly to the activity level. Practice Question 08 Mixed costs consist of a fixed cost element and a controllable cost element. variable cost element and a fixed cost element. relevant cost element and a controllable cost element. variable cost element and a relevant cost element. Practice Question 13 On a CVP income statement Sales-Variable costs-Fixed costs = contribution margin. Sales- Variable costs Contribution margin. O Sales-Fixed costs = Contribution margin. Sales - Cost of goods sold Contribution margin