As the volume of activity increases within the relevant range,how does the variable cost per unit respond?
A)It decreases.
B)It decreases at first,then increases.
C)It remains the same.
D)It increases.

Question

Quizplus · Accepted Answer

Variable cost per unit remains the same as the volume of activity increases within the relevant range. This is because variable costs change in total in direct proportion to changes in activity level, but on a per-unit basis, they stay constant.

As the Volume of Activity Increases Within the Relevant Range,how