Within the relevant range of activity,how will variable cost per unit behave?
A) It will increase in proportion with the level of activity.
B) It will remain constant.
C) It will vary inversely with the level of activity.
D) Its behaviour cannot be determined without additional information.

Question

Quizplus · Accepted Answer

Within the relevant range of activity, variable costs per unit will remain constant. This is because variable costs per unit are affected by factors such as material costs, labor costs, and overhead costs, which typically do not change on a per-unit basis as production levels increase or decrease within the relevant range.

Within the Relevant Range of Activity,how Will Variable Cost Per