What is the behaviour pattern of a variable cost?
A) It increases in total as output increases.
B) It increases per unit as output increases.
C) It decreases per unit as output increases.
D) It remains constant in total at all levels of output.

Question

Quizplus · Accepted Answer

Variable costs increase in total as output increases because they are directly proportional to the level of production or sales volume.

What Is the Behaviour Pattern of a Variable Cost