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Variable costs: A.vary per unit of output as production levels change. B. are fixed in total as production levels change...

Variable costs:

A.vary per unit of output as production levels change.

B. are fixed in total as production levels change.

C. decrease per unit as production volume increases.

D. are fixed per unit and vary in total as production levels change.

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Answer #1

The correct option is :

D. are fixed per unit and vary in total as production levels change.

Total fixed costs and variable cost per unit do not change with change in units.Hence variable cost per unit is fixed while total variable costs increase with increase in production levels and vice-versa.

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