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.

---

Definitions:

Relationship

A connection, association, or involvement between two or more entities, individuals, or concepts, based on interaction, kinship, or shared characteristics.

Class Position

An individual's or group's status within a society's hierarchy, often related to occupation, wealth, and education.

Change

The process through which something becomes different in some particular way, without permanently losing its identity.