As the cost-driver level increases in the relevant range,variable costs per unit of cost driver ________ but total variable costs ________.
A) do not change; increase in direct proportion to the cost-driver activity level
B) do not change; decrease in direct proportion to the cost-driver activity level
C) increase; do not change
D) decrease; do not change

Question

Quizplus · Accepted Answer

Variable costs per unit remain constant as the level of activity changes within the relevant range, but the total variable costs increase in direct proportion to the level of activity or cost-driver.

As the Cost-Driver Level Increases in the Relevant Range,variable Costs