As the volume of activity increases within the relevant range, the variable cost per unit
A)decreases.
B)decreases at first, then increases.
C)remains the same.
D)increases.

Question

Quizplus · Accepted Answer

Variable cost per unit remains the same regardless of the volume of activity within the relevant range. This is because variable costs change in total in direct proportion to changes in activity level, but on a per-unit basis, they stay constant.

As the Volume of Activity Increases Within the Relevant Range