Which of the following is true of unit fixed costs? a. They decrease in amount with an increase in output units. b. They are used to calculate the contribution margin. c. They act as a causal factor that measure the output of the activity that causes costs to change. Od. They lead to more effective business decisions when compared with total fixed costs. An increase in output leads to a(n): a. decrease in step cost. b. increase in total fixed cost. . c. decrease in sunk cost. d. increase in total variable cost. Which of the following takes place when output decreases? a. Total fixed costs remain the same b. Semi-mixed costs increase c. Per-unit step costs decrease d. All of these choices are correct. Taran Company incurred the following costs for the months of January and February: Type of Cost January $ 5,000 Insurance Utilities 4,000 February $ 5,000 5,000 3,500 20,000 Depreciation Materials 3,500 10,000 If output was 5,000 units in January and 10,000 units in February, we can assume that: a. insurance and depreciation are mixed costs. b. materials are the only variable cost. c. utilities, insurance, and depreciation are fixed costs. d. utilities and materials are variable costs. The limits the cost relationship to the range of operations that a firm normally expects to occur. a. alternate range b. relevant range c. variant range d. dependent range