Total variable costs:
A) Change proportionately with changes in activity levels
B) Increase with a decrease in activity.
C) Have no relevant range.
D) Are constant regardless of changes in activity

Question

Quizplus · Accepted Answer

Total variable costs change proportionately with changes in activity levels. This means that as the level of activity or production volume increases, total variable costs increase at a constant rate per unit of activity, and vice versa.

Total Variable Costs