_____ per unit increases or decreases in inverse proportion to its activity level.
A) Variable cost
B) Opportunity cost
C) Contribution cost
D) Fixed cost

Question

Quizplus · Accepted Answer

Fixed cost per unit changes inversely with the activity level because the total fixed cost remains constant, so as activity level increases, the fixed cost per unit decreases, and vice versa.

_____ Per Unit Increases or Decreases in Inverse Proportion to Its