Asked by
Nisha Chandru
on Dec 16, 2024
Verified
Which of the following describes the behavior of a variable cost per unit?
A) varies in increasing proportion with changes in the activity level
B) varies in decreasing proportion with changes in the activity level
C) remains constant with changes in the activity level
D) varies in direct proportion with the activity level
Activity Level
A measurement of the volume of production or the quantity of services provided.
- Fathom the behavior of costs when faced with modifications in production and sales levels.
- Clearly differentiate variable costs from fixed costs based on their behavioral patterns in finance.
Verified Answer
IS
Learning Objectives
- Fathom the behavior of costs when faced with modifications in production and sales levels.
- Clearly differentiate variable costs from fixed costs based on their behavioral patterns in finance.