Per-unit variable costs
A) can be misleading and lead to poor decisions.
B) increase as output increases.
C) decrease as output decreases.
D) remain constant within the relevant range.

Question

Quizplus · Accepted Answer

Per-unit variable costs remain constant within the relevant range as the cost remains the same regardless of the number of units produced. This concept is known as the "constant per-unit variable cost assumption". Therefore, D is the correct answer. A, B, and C are not correct as they do not describe the nature of per-unit variable costs accurately.

Per-Unit Variable Costs