As the volume of output increases:
A)Variable costs per unit will increase.
B)Variable costs per unit will decrease.
C)Variable costs per unit will not change.
D)Variable costs in total will decrease.

Question

Quizplus · Accepted Answer

Variable costs per unit remain constant regardless of the volume of output. This means that the cost to produce one unit does not change as production levels increase or decrease.

As the Volume of Output Increases