As Activity Increases, Unit Variable Cost

question 47

Multiple Choice

As activity increases, unit variable cost:

• A) increases proportionately with activity.
• B) decreases proportionately with activity.
• C) remains constant.
• D) increases by a fixed amount.
• E) decreases by a fixed amount.

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Definitions:

Percentage

A mathematical term representing a number or ratio expressed as a fraction of 100, used to define quantities relative to a whole.

United States

A country located in North America consisting of 50 states and a federal district, known for its diverse geography, culture, and significant influence in world affairs.

Wildfire

An uncontrolled fire spreading through vegetation in rural and wilderness areas, often exacerbated by dry conditions and strong winds.

Dehydrated

A condition resulting from excessive loss of body water and fluids.