As the Cost-Driver Level Increases in the Relevant Range,variable Costs

question 88

Multiple Choice

As the cost-driver level increases in the relevant range,variable costs per unit of cost driver ________ but total variable costs ________.

• A) do not change; increase in direct proportion to the cost-driver activity level
• B) do not change; decrease in direct proportion to the cost-driver activity level
• C) increase; do not change
• D) decrease; do not change

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Definitions:

Kilovolt-ampere

A unit of apparent power in electrical systems, equivalent to 1,000 volt-amperes, often used in the rating of electrical equipment.

Liquid-cooled

A method of heat dissipation that uses a circulating fluid, typically water or coolant, to remove heat from components.

Air-cooled

Pertaining to a method of cooling machines, engines, or electronic devices by circulating air to remove heat.

Output Frequency

The frequency of the signal or current output by a device or circuit, which can vary based on the input or system design.