As Activity Decreases, Unit Variable Cost

question 99

Multiple Choice

As activity decreases, 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:

Tributaries

Smaller rivers or streams that flow into a larger river or lake, contributing to its overall water volume.

Sediment

Particulate organic and inorganic material that settles at the bottom of a liquid, often transported by water, wind, or ice.

Discharge

The flow rate of water from a given source, such as a river or aquifer, typically measured in volume per unit time.

Low-Gradient Stream

A stream with a gentle slope that typically has slower water velocity and can form wide meanders, floodplains, and deposits of sediments along its course.