If Activity Level Decreases, What Happens to the Unit Variable

question 42

Multiple Choice

If activity level decreases, 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.

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Definitions:

Unitarist View

A perspective in industrial relations that emphasizes the shared interests and harmony between employers and employees, as opposed to conflict.

Labor Relations

The field concerned with the management of relationships between employers and employees, focusing on the negotiation, application, and administration of work agreements.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States and becoming the longest and most widespread depression of the 20th century.

Unions

Organizations formed by workers to protect their rights, improve their working conditions, and negotiate wages and benefits with employers.