If the activity level decreases by 25% then total variable costs willGroup of answer choicesDecrease by 25%Increase by 25%Increase by more than 25%Remain the same

Total variable costs• a. increase with a decrease in activity.O b. are constant regardless of changes in activity.• c. have no relevant range.• d. change proportionately with changes in activity levels.

If production increases by 20%, total variable cost will:Group of answer choicesdecrease by 20%.increase by 20%.increase by more than 20%.remain the same.

Which of the following is true regarding Fixed Costs?Group of answer choicesRemain constant as activity level increasesIncrease at a faster rate as activity level decreasesGo up as activity level increasesInversely vary with activity level

When the activity level is expected to decline within the relevant range, what effects would be anticipated with respect to (1) fixed costs per unit and (2) variable costs per unit?

Which of the following costs remains constant within a relevant range of activity?Group of answer choicesvariable costsmixed costsfixed costsproduction costs