If activity level increases, what happens to the unit variable cost?
A)It remains the same.
B)It decreases.
C)It increases.
D)It depends on how much the activity level increases.

Name: If activity level increases, what happens to the unit variable cost? A)It remains the same. B)It decreases. C)It increases. D)It depends on how much the activity level increases.
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Question

Quizplus · Accepted Answer

Unit variable cost remains the same per unit regardless of changes in the activity level, as it varies directly with the level of production.

If Activity Level Increases, What Happens to the Unit Variable