What happens when the cost-driver activity level decreases within the relevant range?
A) Total fixed costs increase.
B) Fixed costs per unit of cost driver decrease.
C) Total variable costs decrease.
D) Variable costs per unit of cost driver decrease.

Question

Quizplus · Accepted Answer

When the cost-driver activity level decreases within the relevant range, total variable costs decrease because variable costs vary directly with the level of activity.

What Happens When the Cost-Driver Activity Level Decreases Within the Relevant