Which cost behavior classification remains constant per unit regardless of changes in the activity level within the relevant range?
AFixed Cost per unit
BVariable Cost per unit
CTotal Variable Cost
DMixed Cost per unit
Explanation
Core Concept: Variable cost per unit remains constant across activity levels within the relevant range, while total variable cost varies directly with production volume. Context/Distractors: Fixed cost per unit decreases as output increases. Total variable cost increases with output. Exam Tip/Key Fact: Understanding cost behavior in the relevant range is vital for accurate budgeting and forecasting.
Exam Relevance
- Topic: Cost Accounting
- Subtopic: Cost Behavior & Classifications

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