Which of the Following Statements Is CORRECT with Respect to Variable

question 84

Multiple Choice

Which of the following statements is CORRECT with respect to variable cost per unit, within the relevant range?

• A)It will remain the same as production levels change.
• B)It will increase as production decreases.
• C)It will decrease as production increases.
• D)It will decrease as production decreases.

---

Definitions:

Break-even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business.

Sales

The total revenue generated from selling goods or services over a certain period.

Variable Costs

Costs that vary depending on the level of activity within a business, like those associated with raw materials or the production process.

Net Income

The net income of a business once all deductions, including expenses, taxes, and other costs, are made from its total earnings.