Variable cost per unit remains constant within the relevant range.

Question

Quizplus · Accepted Answer

Variable costs are the costs that change with changes in production levels, such as direct materials and labor. Within the relevant range, the variable cost per unit remains constant as there is no change in the cost per unit with the change in production units. This is because variable costs are assumed to have a linear relationship with production levels. Therefore, the statement is true.

Variable Cost Per Unit Remains Constant Within the Relevant Range