The graph of the variable costs when plotted against the activity level appears as a line parallel to horizontal axis.

Name: The graph of the variable costs when plotted against the activity level appears as a line parallel to horizontal axis.
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Question

Quizplus · Accepted Answer

Variable costs change with the level of activity, so when plotted against the activity level, the graph typically shows a line that starts from the origin and has a positive slope, not a line parallel to the horizontal axis.

The Graph of the Variable Costs When Plotted Against the Activity