Question $3(1$ point$)$

Which of the following statements is false with respect to cost behavior?

Cost behavior relates to the categorization of costs as fixed, variable, or mixed.

Mixed costs include a fixed and variable portion of the cost.

Fixed costs, calculated on a per unit basis, are inversely related to the change

in activity level.

Knowledge of cost behavior is not required when preparing a traditional income

statement.

Variable costs do not change in total as activity levels change.