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 increase.
D) Variable costs per unit of cost driver are unchanged.

Question

Quizplus · Accepted Answer

When the cost-driver activity level decreases within the relevant range, the variable costs per unit remain unchanged because variable costs per unit are constant within the relevant range.

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