Variable costs
A) vary in total with a given change in an activity level.
B) increase per unit as activity levels increase.
C) decrease per unit as activity levels decrease.
D) do not change in total with a given change in an activity level.

Question

Quizplus · Accepted Answer

Variable costs change in total in direct proportion to changes in the activity level, meaning they increase as activity levels increase and decrease as activity levels decrease.

Variable Costs