Within the Relevant Range, Variable Costs Can Be Expected To

question 276

Multiple Choice

Within the relevant range, variable costs can be expected to:

• A) vary in total in direct proportion to changes in the activity level.
• B) remain constant in total as the activity level changes.
• C) increase on a per unit basis as the activity level increases.
• D) increase on a per unit basis as the activity level decreases.

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Definitions:

Merchandise

Goods or products that are bought and sold in business transactions.

Discount Period

The time frame during which a discount is available or applicable, often used in the context of notes payable or receivable.

Sales Returns

Sales returns refer to the process of refunding a customer for the return of goods, which results in a reduction of revenues on the seller's financial statements.