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

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 direct proportion to changes in activity level.

An Increase in Total Variable Cost Usually Indicates