Variable cost per unit:
A) increases in direct proportion to changes in the cost driver.
B) decreases in direct proportion to changes in the cost driver.
C) remains unchanged as the level of the cost driver changes.
D) increases, but not in direct proportion to changes in the cost driver.

Question

Quizplus · Accepted Answer

Variable cost per unit remains constant regardless of changes in the level of the cost driver. This means that the cost per unit does not change as production levels (or other activity levels) increase or decrease.

Variable Cost Per Unit