Which of the following describes the behavior of a variable cost per unit?
A) varies in increasing proportion with changes in the activity level
B) varies in decreasing proportion with changes in the activity level
C) remains constant with changes in the activity level
D) varies in direct proportion with the activity level

Question

Quizplus · Accepted Answer

Variable cost per unit remains constant regardless of changes in the activity level, meaning the cost per unit does not change even though the total variable cost will vary with the level of activity.

Which of the Following Describes the Behavior of a Variable