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Arte-miy333 [17]
3 years ago
8

"Variable costs are expenses that" ________. A. remain constant on a per-unit basis but change in total based on activity level

B. decrease on a per-unit basis as activity level increases C. remain constant in total regardless of activity level within a relevant range D. remain constant on a per-unit basis and remain constant in total regardless of activity level
Business
1 answer:
mafiozo [28]3 years ago
4 0

Answer:

A. remain constant on a per-unit basis but change in total based on activity level

Explanation:

In the short run, variable costs only vary according to the total output of the company. E.g. a company's variable cost of manufacturing product X is $10 per unit. If it produces 10,000 units, total variable costs will = $10 x 10,000 = $100,000.

In the long run variable costs will probably vary because production processes will also vary or the cost of inputs change.

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