General Studies · Cost and Management Accounting

Mu Bank's Management Accounting Department is preparing the budget for the new Digital Customer Acquisition Unit (DCAU). Consider the following statements: Statement I: The unit's rental cost of INR 5 Lakh per month is a fixed cost because it remains constant in total within the relevant range. Statement II: The cost of the digital marketing agency (paid INR 200 per acquired customer) is a variable cost because its total changes proportionally with the volume. Statement III: The total cost at the 50,000 customer target must be calculated using the High-Low Method to separate the mixed costs. Statement IV: Implementing a Zero-Base Budgeting (ZBB) approach will compel the unit manager to justify the INR 5 Lakh monthly rental cost. Which of the statement(s) is/are correct?