The true statement about cost behavior is that:

Multiple Choice

• variable costs are constant on a per-unit basis and are constant in total as activity changes.

• variable costs change on a per-unit basis and change in total as activity changes.

• fixed costs change on a per-unit basis and are constant in total as activity changes.

• fixed costs are constant on a per-unit basis and change in total as activity changes.

• fixed costs are constant on a per-unit basis and are constant in total as activity changes.