Within the relevant range, the variable cost per unit:
A) remains constant as activity changes.
B) increases as activity increases.
C) decreases as activity increases.
D) can increase or decrease as the activity changes.

Question

Quizplus · Accepted Answer

Within the relevant range, variable costs per unit remain constant even if the volume of activity changes. This is because variable costs are incurred for each unit produced, and as long as the level of complexity or the amount of raw material used doesn't change, variable costs per unit shouldn't change.

Within the Relevant Range, the Variable Cost Per Unit