Which of the following defines variable cost behavior?
A) remains constant remains constant
B) remains constant increases
C) increases increases
D) increases remains constant

Question

Which of the following defines variable cost behavior? 
A) remains constant remains constant 
B) remains constant increases 
C) increases increases 
D) increases remains constant

Quizplus · Accepted Answer

Variable cost behavior refers to costs that increase or decrease proportionally with changes in the level of activity, while fixed costs remain constant regardless of the level of activity. Therefore, the correct answer is D, where variable costs increase but remain constant per unit of activity.

Which of the Following Defines Variable Cost Behavior