Study Guide Exam 1

# Study Guide Exam 1 - Chapter 1 Learning objective number 1-...

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based on how many minutes you talk—the total bill varies with the number of minutes used. Variable Cost Per Unit - Although variable costs change in total as the activity level rises and falls, variable cost per unit is constant. For example, the cost per long distance minute may be ten cents a minute. Total Fixed Cost- A fixed cost remains constant, in total, within the relevant range, regardless of changes in the level of the activity. In other words, fixed costs do not change as long as the activity level falls within the “relevant range.” For example, your monthly basic telephone bill probably is a set amount and does not change based
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## Study Guide Exam 1 - Chapter 1 Learning objective number 1-...

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