Within the relevant range of activity,variable cost per unit will:
A) increase in proportion with the level of activity.
B) remain constant.
C) vary inversely with the level of activity.
D) change in some other way.

Question

Quizplus · Accepted Answer

Within the relevant range of activity, variable cost per unit will remain constant. This means that the cost per unit will not change regardless of how many units are produced. However, if the level of activity goes beyond the relevant range, then the variable cost per unit may change.

Within the Relevant Range of Activity,variable Cost Per Unit Will