When volume or level of activity decreases, variable costs will
A)increase per unit.
B)increase in total.
C)decrease in total.
D)decrease per unit.

Name: When volume or level of activity decreases, variable costs will A)increase per unit. B)increase in total. C)decrease in total. D)decrease per unit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable costs are costs that vary with the level of activity. Therefore, as the level of activity decreases, the total variable costs will decrease accordingly.

When Volume or Level of Activity Decreases, Variable Costs Will