When production levels are expected to increase within a relevant range, and a flexible budget is used, what effect would be anticipated with respect to each of the following costs?

 When production levels are expected to increase within a relevant range, and a flexible budget is used, what effect would be anticipated with respect to each of the following costs?

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Total fixed costs are a constant amount in the relevant range. Therefore, when increasing production levels within that range, cost per unit decreases. Fixed costs per unit are not useful for prediction purposes because they change as production levels change.

Variable costs per unit are a constant amount in the relevant range. But total variable costs increase in constant proportion to increases in production. Variable costs are useful for forecasting because unit costs are reasonably constant in the relevant range, allowing for direct predictions of total variable cost at any level in the range.