Variable costs are costs that remain constant on a per-unit basis as the level of activity changes. Group of answer choices True False

The statement "Variable costs are costs that remain constant on a per-unit basis as the level of activity changes" is False.15

Variable costs are, in fact, costs that change in total in direct proportion to the level of activity in a company. For example, if a company produces more units, the variable costs such as raw materials and direct labor will increase correspondingly. These costs do not remain constant on a per-unit basis; instead, they vary with the level of production or activity.

On the other hand, fixed costs are the costs that remain constant in total regardless of the level of activity in a company. Examples of fixed costs include rent, salaries, and insurance premiums. These costs do not change with the level of production or activity.

In summary, the correct statement should be "Fixed costs are costs that remain constant on a per-unit basis as the level of activity changes," which is true. Variable costs, by definition, vary with the level of activity and do not remain constant on a per-unit basis.