An increase in total variable cost usually indicates _____.
A)the cost-driver activity level is decreasing
B)the cost-driver activity level is increasing
C)variable costs per unit is decreasing
D)variable costs per unit is increasing

Question

Quizplus · Accepted Answer

An increase in total variable cost typically indicates that the cost-driver activity level is increasing, as variable costs change in proportion to changes in the level of activity.

An Increase in Total Variable Cost Usually Indicates _____