Cell Company has discovered that the cost of processing customer invoices is strictly variable within the relevant range. Which of the following statements concerning the cost of processing customer invoices is incorrect?
A) The total cost of processing customer invoices will increase as the volume of customer invoices increases.
B) The cost per unit for processing customer invoices will decline as the volume of customer invoices increases.
C) The cost of processing the 100th customer invoice will be the same as the cost of processing the first customer invoice.
D) The average cost per unit for processing a customer invoice will equal the incremental cost of processing one more customer invoice.

Question

Quizplus · Accepted Answer

If a cost is strictly variable within the relevant range, the unit cost will be consistently the same and will not increase or decrease with a change in volume.

Cell Company Has Discovered That the Cost of Processing Customer