Variable costs,
A)in total, remain constant within a relevant range.
B)on a per unit basis, are constant as activity increases or decreases.
C)on a per unit basis, decreases as activity decreases.
D)in total, decrease when activity increases.

Question

Quizplus · Accepted Answer

Variable costs are costs that fluctuate in relation to changes in activity levels. On a per unit basis, variable costs remain constant as activity increases or decreases, but in total they will increase or decrease depending on the level of activity.

Variable Costs