Within the Relevant Range of Activity,how Will Variable Cost Per

question 103

Multiple Choice

Within the relevant range of activity,how will variable cost per unit behave?

• A) It will increase in proportion with the level of activity.
• B) It will remain constant.
• C) It will vary inversely with the level of activity.
• D) Its behaviour cannot be determined without additional information.

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Definitions:

Minimum Scores

The lowest acceptable limits or points, frequently used in contexts like examinations, evaluations, or qualifications.

Multiple Cut-off Approach

A decision-making technique where alternatives are evaluated against a series of minimum criteria or thresholds, eliminated if they fail to meet any one of these.

Compensatory Approach

An approach where a higher score on a predictor may compensate for a low score on another.

Predictors

Variables or factors used to forecast or anticipate the outcome of a particular situation or behavior.