Within the relevant range, the difference between variable costs and fixed costs is:

A) both total variable costs and total fixed costs fluctuate.
B) variable costs per unit fluctuate and fixed costs per unit remain constant.
C) variable costs per unit are constant and fixed costs per unit fluctuate.
D) both total variable costs and total fixed costs are constant.

Variable Costs

Expenses that vary directly with the level of production or service activity, such as raw materials and direct labor costs.

Fixed Costs

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

Relevant Range

The span of activity or volume level within which the assumptions about fixed and variable costs are expected to hold true.