Which of the following is the correct statement about fixed costs? The fixed cost per unit will decrease when volume increases. The fixed cost per unit will decrease when volume decreases. The fixed cost per unit will increase when volume increases. The fixed cost per unit does not change when volume changes.

Question

Business

Carmen Whitney

14 October, 09:50

Which of the following is the correct statement about fixed costs? The fixed cost per unit will decrease when volume increases. The fixed cost per unit will decrease when volume decreases. The fixed cost per unit will increase when volume increases. The fixed cost per unit does not change when volume changes.

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Answers (1)

Know the Answer?

Maleah Terrell · Answer 1

The correct statement is: "The fixed cost per unit will decrease when volume increases."

Explanation:

Total fixed costs remain the same within a relevant range, but the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units produced.