Instructions: In terms of cost behavior, choose either in total or per unit to complete the following sentences.

A. Variable cost_____ is always constant regardless of the level of activity within the relevant range. B. As activity increases, the variable cost _____ will increase.

Instructions: In terms of cost behavior, choose either in total or per unit to complete the following sentences.

A. Fixed cost ____ is always constant regardless of the level of activity within the relevant range. B. As activity increases, the fixed cost ____ will decrease.