The graph of a variable cost per unit when plotted against its related activity base appears as a:
A) circle.
B) rectangle.
C) straight line.
D) curved line.

Question

Quizplus · Accepted Answer

The graph of a variable cost per unit when plotted against its related activity base appears as a straight line because the variable cost usually remains constant per unit of activity. As the activity level increases, the total variable cost will increase in direct proportion to the activity level, resulting in a linear relationship between the two variables.

The Graph of a Variable Cost Per Unit When Plotted