Principles of Management Accounting

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Within the relevant range, the difference between variable costs and fixed costs is:

a. variable costs per unit fluctuate and fixed costs per unit remain constant.
Selected: b. variable costs per unit are constant and fixed costs per unit fluctuate.This answer is correct.
c. both total variable costs and total fixed costs are constant.
d. both total variable costs and total fixed costs fluctuate.

Correct! On a per unit basis, variable costs are constant and fixed costs fluctuate.

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