As activity changes, total variable cost increases or decreases proportionately with the activity change, but unit variable cost remains the same.

Name: As activity changes, total variable cost increases or decreases proportionately with the activity change, but unit variable cost remains the same.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable costs change in total in direct proportion to changes in activity level, but the cost per unit remains constant regardless of the level of activity.

As Activity Changes, Total Variable Cost Increases or Decreases Proportionately