Question: The true statement about cost behavior is that: variable costs change on a per-unit basis and change in total as activity changes. variable costs are

The true statement about cost behavior is that: variable costs change on a per-unit basis and change in total as activity changes. variable costs are constant on a per-unit basis and are constant in total as activity changes. fixed costs are constant on a per-unit basis and constant in total as activity changes. fixed costs are constant on a per-unit basis and change in total as activity changes. variable costs are constant on a per-unit basis and change in total as activity changes.

Total fixed costs

  1. remain constant on a per-unit basis.

  2. vary directly with changes in activity.

  3. increase on a per-unit basis as activity increases.

  4. vary inversely with changes in activity.

  5. remain constant as activity changes

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