Which costs will change with a decrease in activity within t

Which costs will change with a decrease in activity within the relevant range?

Multiple Choice

A.Unit fixed cost and total fixed cost.

B Unit fixed costs and total variable cost.

C Unit variable cost and unit fixed cost.

D Total fixed costs and total variable cost.

Solution

Unit fixed costs and total variable cost will change with a decrease in activity within the relevant range. Units fixed costs will increase and total variable cost will decrease. Option B is correct