Which of the following describes the behavior of the variable cost per unit? Remains constant with changes in the activity levelVaries in decreasing proportion with changes in the activity level Varies in increasing proportion with changes in the activity level Varies in direct proportion with the activity level

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Answered: Which of the following describes the…

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Accounting

Which of the following describes the behavior of the variable cost per unit?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9MC: Fixed costs are expenses that ______________________________ . A. vary in response to changes in...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Which of the following describes the behavior of the variable cost per unit?

Remains constant with changes in the activity level
Varies in decreasing proportion with changes in the activity level
Varies in increasing proportion with changes in the activity level
Varies in direct proportion with the activity level

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