As activity increases, unit variable cost:
A) increases proportionately with activity.
B) decreases proportionately with activity.
C) remains constant.
D) increases by a fixed amount.
E) decreases by a fixed amount.

Question

Quizplus · Accepted Answer

Unit variable cost remains constant per unit, regardless of the level of activity. This means that the cost per unit does not change as the volume of production or activity increases or decreases.

As Activity Increases, Unit Variable Cost