As the level of volume of activity increases, the variable cost per unit remains constant.

Name: As the level of volume of activity increases, the variable cost per unit remains constant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is a characteristic of variable costs, which are costs that increase or decrease in proportion to the level of activity. Therefore, as the volume of activity increases, the total variable cost will increase, but the cost per unit will remain constant.

As the Level of Volume of Activity Increases, the Variable