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The difference between variable costs and fixed costs is ____

A. Variable costs per unit fluctuate and fixed costs per unit remain  constant.

B. Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable.

C. Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change.

D. Variable costs per unit change in varying increments, while fixed costs per unit change in equal increments.

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Question added by Hany Sabry , Finance Manager , Coffee Adress
Date Posted: 2015/01/22
Surya  K S
by Surya K S , Accounting Supervisor , SERVETECH

variable costs per unit are fixed over the relevant range and fixed costs per unit are variable

Ebo Wilberforce
by Ebo Wilberforce , Accounting Teacher , Methodist Senior High School

Option B... variable cost per unit doesn't change with the level of output but fixed cost per unit changes, the more you produce the lesser the fixed cost per unit

Munavar Pk
by Munavar Pk , ACCOUNTANT , PIPE INDIA ENTERPRISES

I THINK IT IS "B"

  BECAUSE  VARIABLE COST REMAIN CONSTANT FOR RELEVANT PERIOD. BUT IN THE CASE OF FIXED COST CAN BE CHANGES IN  UNITS 

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Option B  >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>  Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable.

manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

My point of view is Option B

RASHID K V
by RASHID K V , Accountant , Catco Aerospace FZE

B). Variable Cost per unit will remain constant at every level of production whereas Fixed cost per unit will vary according to the level of production. 

Almutaz Bakry Sidahmed
by Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

Option (b) is correct answer =================

Abdul Samad Poolakkal
by Abdul Samad Poolakkal , Accounts Officer , Makstlyo Interiors

Option B: Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable is correct.

 

Explanation: Fixed cost changes in unit, i.e. as the units produced increases, fixed cost per unit decreases and vice versa, so the fixed cost per unit is inversely proportional to the number of output produced. Where as Variable cost remains same, per unit.

Taif Noori
by Taif Noori , Finance Assoiciate , UN WOMEN

C is the currect answer , the fixed cost never change in process , like the rents of workplace

Deleted user
by Deleted user

option c is the correct answer

MOHAMMED  KHATER
by MOHAMMED KHATER , Financial Accountant , الرياض

answer :d

. Variable costs per unit change in varying increments, while fixed costs per unit change in equal increments.

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