Which of the Following Best Describes the Behaviour of Variable

question 48

Multiple Choice

Which of the following best describes the behaviour of variable cost per unit?

• A) Variable cost per unit varies in direct proportion with the activity level.
• B) Variable cost per unit varies in decreasing proportion with the changes in the activity level.
• C) Variable cost per unit varies in increasing proportion with changes in the activity level.
• D) Variable cost per unit remains constant with changes in the activity level.

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