Within the relevant range, the total amount of cost changes in direct proportion to changes in the cost driver. within the relevant range, the total amount of cost does not change in direct proportion to changes in the cost driver. a) fixed; variable b) step; mixed c) mixed; step d) variable; fixed

D. Variable, Fixed

Explanation:

Variable Costs: The cost that changes with the change in level of production. If the production increases, the variable cost also increases whereas if the production decreases then the variable cost also decreases.

Example: Direct material, direct labor etc.

Fixed Costs: The cost that does not changes with the change in level of production, instead remains constant. The fixed cost remains constant, irrespective of the production. Thus, when calculated per unit, the fixed cost will be higher when production is less and lower when the production is more.

Example: Rent, Salary of employees etc.

answer; by looking at total product,marginal product,and changes in both after changes in inputs