Variable costs
A)are fixed per unit and vary in total as production levels change.
B)are fixed in total as production levels change.
C)decrease per unit as production volume increases.
D)vary per unit of output as production levels change.

Question

Quizplus · Accepted Answer

Variable costs are fixed per unit and vary in total as production levels change. This means that the cost per unit remains the same regardless of the number of units produced, but the total variable cost will increase or decrease in direct proportion to production volume.

Variable Costs