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In managerial cost accounting, costs that remain constant in total over a relevant range of production volume but decrease per unit as output increases are:

AVariable Costs
BFixed Costs
CSemi-Variable Costs
DMarginal Costs

Explanation

• Total Fixed Costs remain unchanged regardless of fluctuations in production volume within the relevant operational range.
• Fixed Cost per Unit decreases as production volume increases because total fixed overhead is spread over more units.
• Variable Costs, in contrast, change in direct proportion to changes in production output.

Exam Relevance
  • Topic: Cost Accounting
  • Subtopic: Cost Behavior
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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