Within a relevant range, the amount of variable cost per unit
A)differs at each activity level.
B)remains constant at each activity level.
C)increases as activity increases.
D)decreases as activity increases.

Question

Quizplus · Accepted Answer

Within a relevant range, variable cost per unit remains constant at each activity level. This means that the cost of each additional unit produced remains the same, as long as the level of activity (such as production volume) remains within a certain range. However, if activity increases beyond this range, variable costs per unit may start to increase due to factors such as capacity constraints or resource limitations.

Within a Relevant Range, the Amount of Variable Cost Per