What is characteristic of variable costs within the relevant range?
A) decrease in total as output increases
B) stay constant in total as output increases
C) decrease on a per unit basis as output increases
D) stay constant on a per unit basis as output changes

Question

Quizplus · Accepted Answer

Variable costs stay constant on a per unit basis as output changes, meaning the cost per unit does not change with the level of production within the relevant range.

What Is Characteristic of Variable Costs Within the Relevant Range