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Which one of the following statements about cost behaviour is true? Select one: Fixed costs per unit vary with the level of a
Pizza Paradise makes and sells only one kind of Pizza; Hawaiian Pizza, which is made with a key ingredient, Pineapple slices.
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Answer #1

Answer 1

Total Variable costs are constant within the relevant range

Becasue total variable cost moves in hand to hand with the relevant range and if the range will increase then the total varible cost will increase or vice versa.

Answer - 2

Direct Product cost

Because pineapple slices are the resources for pizza product and that is directly related to the operational activities for revenue generation so it would be direct product cost.

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