Fixed costs expressed on a per unit basis:

A) increase with increases in activity.
B) decrease with increases in activity.
C) are not affected by activity.
D) should be ignored in making decisions since they cannot change.

Per Unit Basis

Calculations or measurements made by dividing the total by the number of units to find the amount corresponding to a single unit.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Activity

An action or task that is part of a process or program, often contributing to achieving a goal or outcome.