Question

Which of the following is the correct statement about fixed costs? The fixed cost per unit will decrease when volume increases. The fixed cost per unit will decrease when volume decreases. The fixed cost per unit will increase when volume increases. The fixed cost per unit does not change when volume changes.

Answer 1

Answer:

The correct statement is: "The fixed cost per unit will decrease when volume increases."

Explanation:

Total fixed costs remain the same within a relevant range, but the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units produced.

Answer 2

The correct statement related to the fixed cost is that it will decrease at the time when the volume increased.

What is a fixed cost?

Fixed cost is the cost that remains fixed whether the level of production is increased or not. Also, the fixed cost per unit should reduced at the time when the production should be increased since the similar fixed should be spread for the additional units i.e. produced. Examples of the fixed cost could be rent expense, depreciation expense, salary expesne, etc.

Therefore, The correct statement related to the fixed cost is that it will decrease at the time when the volume increased.

Learn more about fixed cost here: https://brainly.com/question/24543471