Variable (unit-level) costs per unit:
A)Increase as production increases.
B)Decrease as production decreases.
C)Stay the same at any level of production.
D)Increase as production decreases.

Question

Quizplus · Accepted Answer

Variable costs per unit stay the same at any level of production, regardless of the total volume of production. This is because variable costs change in total in direct proportion to changes in activity or volume of output, but on a per-unit basis, they remain constant.

Variable (Unit-Level) Costs Per Unit