If Activity Level Increases, What Happens to the Unit Variable

question 122

Multiple Choice

If activity level increases, what happens to the unit variable cost?

• A)It remains the same.
• B)It decreases.
• C)It increases.
• D)It depends on how much the activity level increases.

---

Definitions:

Expectancy Theory Predicts

Suggests that an individual's motivation is influenced by the expectancy that effort will lead to performance, which will then lead to desired outcomes.

Goal-Setting Theory

A psychological theory suggesting that setting specific, challenging, and attainable goals can lead to higher performance.

Task Goals

Specific objectives or targets related to the successful completion of a job or task.

Increase Work Efforts

An initiative or practice to enhance the quantity and quality of energy, time, and resources employees allocate to their job roles and responsibilities.