Which of the following statements is TRUE with respect to variable costs per unit?
A) They will decrease as production increases within the relevant range.
B) They will increase as production decreases within the relevant range.
C) They will remain the same as production levels change within the relevant range.
D) They will decrease as production decreases within the relevant range.

Question

Quizplus · Accepted Answer

Variable costs per unit remain constant regardless of the level of production within the relevant range. This means that the cost per unit does not change as production volumes increase or decrease, as long as the production is within the capacity the business has planned for.

Which of the Following Statements Is TRUE with Respect to Variable