Question: Question TRUE FALSE Total variable costs change with activity Total fixed costs change with activity Mixed costs comprise fixed costs, variable costs, and opportunity costs

Question TRUE FALSE
Total variable costs change with activity
Total fixed costs change with activity
Mixed costs comprise fixed costs, variable costs, and opportunity costs
Fixed costs per unit decrease with increases in activity
Variable costs per unit remain constant with changes in activity
Contribution margin = Revenue - Fixed costs
Contribution margin is the amount available after covering variable costs
The greater the contribution margin, the greater a company's ability to cover its fixed costs
In the formula: 'Y = mX + C', 'm' represents the change in fixed costs over time
The relevant range is a time period over which variable and fixed costs remain constant

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